A stoa (/ËstoÊÉ/; plural, stoas, stoai, or stoae /ËstoÊ.iË/), in ancient Greek architecture, is a covered walkway or portico, commonly for public use. Early stoas were open at the entrance with columns, usually of the Doric order, lining the side of the building; they created a safe, enveloping, protective atmosphere.
BREAKING DOWN 'Capitalized Lease Method'. When a lease is capitalized, the lessee creates an asset account for the leased item, and the asset value on the balance sheet is the lesser of fair market value or the present value of the lease payments. The lessee also posts a lease obligation in the liability section of the balance sheet for the same dollar amount as the asset.
If the lease is accounted for as a capital lease, the lessor must determine if it classifies as a direct-finance lease or as a sales-type lease. To classify as a sales-type lease, the fair value of the asset must be greater than the lessor's book value. If not, it is accounted for as a direct-financing lease. As its name implies, a direct-financing lease is basically the coupling of a sale and financing transaction.