Understanding the difference between financial leases and operating leases is essential for accurate financial reporting and business decision-making. A financial lease typically transfers most risks and rewards of ownership to the user and is treated similarly to asset ownership in accounting, while an operating lease functions more like a rental arrangement without ownership transfe... https://medium.com/@riverstonetrainingsg/financial-lease-vs-operating-lease-explained-accounting-examples-and-business-applications-496b6cc3fd6a