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Code of Federal Regulations Title 49. Transportation 49 CFR § 1201.766.5 766.5 Capitalized lease obligations

Current as of January 02, 2025 | Updated by Findlaw Staff

(a) Long-term leases which are clearly in substance installment purchases shall be capitalized. The liability under such leases which have been capitalized in fixed asset accounts shall be recorded in this account. (See instruction 2–20.)

(b) This account shall be kept so as to show the liability under each lease obligation.

Note A:  The portion of the liability for long-term leases which is payable within 1 year of the close of the accounting period is includible in account 764, Equipment obligations and other long-term debt due within one year.

Note B:  Leases which merely state the right to use property and a related obligation to pay specific rents over a definite future period shall not be considered to be assets and liabilities.

(Authority:  49 U.S.C. 12, 20, 304, 913 and 1012)

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Cite this article: FindLaw.com - Code of Federal Regulations Title 49. Transportation 49 CFR § 1201.766.5 766.5 Capitalized lease obligations - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-49-transportation/cfr-sect-49-1201-766-5/

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