A synthetic lease is a combination of derivative securities and asset purchases that mimic the cash flows of an operating lease.

Name: A synthetic lease is a combination of derivative securities and asset purchases that mimic the cash flows of an operating lease.
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A synthetic lease is a financial structure that allows a company to have the benefits of owning an asset through a capital lease while treating it as an operating lease for accounting purposes, not involving derivative securities.

A Synthetic Lease Is a Combination of Derivative Securities and Asset