Re:$3 Trillion in Forgotten Debt
by runeks on Saturday November 18, 2017 @09:25AM
(#15729043)
In layman’s terms, does this mean that some company a) borrowing money for 10 years to buy machinery, and b) leasing that machinery for the next 10 years, will be reported equally on its balance sheet?
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More or less. Big difference is that 10 years leasing would still be less debt/asset than owning (cars being a prime exampel with leasing usually being for 3 years at a time, obviously a smaller asset/debt than buying the same car).