| FINANCIAL STATEMENT PRESENTATION |
Also known as “off balance sheet” financing, a properly structured FASB-13 qualifying Operating Lease can significantly improve the presentation of your income statement and balance sheet. A properly structured Operating Lease charges the P&L only for the monthly rental associated with your lease obligation, not for depreciation and interest expense. As important is the balance sheet
effect — there is no short or long-term indebtedness booked with an Operating Lease. Rather, your obligation to pay rent is shown only in the notes to your financial statements.
Ask your Relationship Manager about how your lease can be structured to create “Operating Lease” treatment.
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