Lease Accounting and Asset Accounting interaction
Leased assets differ from regular assets in these ways:
- Leased assets are associated with a lease number and a lease company that may or may not be the same as the asset company.
- Leased assets are assigned with a classification that must match the lease classification.
- Operating leases can be tracked as assets, but they must have a zero book value.
- More than one asset can be associated with a single lease. The total net book value of all the assets must match the lease obligation or the net present value, whichever is lower.