Continued... O Accounting treatment Types of Leases o Financial leases -Operating leases FASB requires that leases be capitalized Value of lease o Equal to the PV of the lease payments o Discounted at the firm's borrowing rate for a secured loan with similar maturity Disclosure of details in footnotes 渊外经价货多方是 YO年N0事0E0003Continued… zAccounting treatment – Types of Leases o Financial leases – Operating leases – FASB requires that leases be capitalized – Value of lease o Equal to the PV of the lease payments o Discounted at the firm’s borrowing rate for a secured loan with similar maturity – Disclosure of details in footnotes