operating lease

danielpsico

Senior Member
italia italiano
Lease payments under an operating lease shall be recognised as an expense on a straight-line basis over the lease

I pagamenti della locazione sotto una locazione/affitto operativa/o saranno riconosciuti come una spesa su una base diretta sulla locazione

I don't undestand this sentence at all. I give you the rest of the sentence

Lease payments under an operating lease shall be recognised as an expense on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern of the user’s benefit.
 
  • k_georgiadis

    Senior Member
    English (AE)
    Well, let's first establish what is meant by an operating lease: Let us say that Company A has a fully capable manufacturing plant to make widgets but, instead of manufacturing widgets, decides to let company B operate the plant. It is an operating lease because company B is not simply leasing a building, it is also running all the equipment owned by Company A.

    Your sentence probably refers to Company B, stating that the lease payments made to Company A will be treated as an expense item.
     

    danielpsico

    Senior Member
    italia italiano
    good stuff!! I can't find a translation, but your explanation is great. In italian the word "lease" doesn't exsist. Can I stranslate the English word LEASE with the Italian/English word Leasing? Do you think that sometimes their meaning might be the same depending on the contest?
     

    pescara

    Senior Member
    English-USA
    Well, let's first establish what is meant by an operating lease: Let us say that Company A has a fully capable manufacturing plant to make widgets but, instead of manufacturing widgets, decides to let company B operate the plant. It is an operating lease because company B is not simply leasing a building, it is also running all the equipment owned by Company A.

    Your sentence probably refers to Company B, stating that the lease payments made to Company A will be treated as an expense item.
    Actually, I believe this text relates to the difference between an operating lease and a financing lease. There are certain tests that are used for accounting purposes to determine what kind of lease it is and how the lease is recorded in the company's financial statements. With an operating lease, the lease payments are recorded as an expense on the income statement and nothing is recorded on the balance sheet. With a financing lease, the transaction is recorded as if the company borrowed debt and bought the equipment. The company records an asset and a liability on its balance sheet, and interest expense on its income statement.

    This probably doesn't help much with the translation, but I wanted to make sure that the meaning is clear.
    Ciao.
     
    Last edited:

    danielpsico

    Senior Member
    italia italiano
    thanks again. I am doing this translation for a friend that is writing a thesis...it's becoming a burden...hope to learn something new at least. ciao
     
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