capitalizing leases vs. interest

are the effects of capital lease vs. operating lease the exact same as capitalizing interest cost of construction vs. expensing it?

I’d say that the concept is pretty similar, but the effects may not be the same on all the ratios.

ryanwtyler Wrote: ------------------------------------------------------- > are the effects of capital lease vs. operating > lease the exact same as capitalizing interest cost > of construction vs. expensing it? no

no capital lease creates a liability, has interest payments, etc. capitalized interest doesn’t