Operating lease Risks and rewards rest with lessor a Generally cancellable at virtually no cost Sum of lease payments less than the initial cost to the lessor a may have a separate or inclusive maintenance contract whereby the lessor assumes responsibility for maintenance of the asset service or maintenance lease a Equipment reverts back to the lessor when lease is terminatedOperating Lease ◼ Risks and rewards rest with lessor. ◼ Generally cancellable at virtually no cost. ◼ Sum of lease payments less than the initial cost to the lessor. ◼ May have a separate or inclusive maintenance contract whereby the lessor assumes responsibility for maintenance of the asset - service or maintenance lease. ◼ Equipment reverts back to the lessor when lease is terminated