A synthetic lease is a financing structure by which a company structures the ownership of an asset so that – for financial accounting purposes (under pre-2003 U.S. financial accounting rules), the asset is owned by a special-purpose entity and leased to the operating company under an operating lease. The special-purpose entity is usually owned by the lessee/operating company, and is given just enough independence so that it can be taken off the operating company's balance sheet.
A synthetic lease is a financing structure by which a company structures the ownership of an asset so that – for financial accounting purposes (under pre-2003 U.S. financial accounting rules), the asset is owned by a special-purpose entity and leased to the operating company under an operating lease. The special-purpose entity is usually owned by the lessee/operating company, and is given just enough independence so that it can be taken off the operating company's balance sheet.
Source: Wikipedia "Synthetic lease" · CC BY-SA 4.0
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