The essence of the treatment of long-term,non-cancellable leases is the same as if the company had borrowed the money and bought the asset.

Name: The essence of the treatment of long-term,non-cancellable leases is the same as if the company had borrowed the money and bought the asset.
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The treatment of long-term, non-cancellable leases is similar to borrowing money to purchase an asset. The lease payments are treated as a liability, and the asset is recorded on the balance sheet.

The Essence of the Treatment of Long-Term,non-Cancellable Leases Is the Same