R17 Long-Lived Assets Lessor Confusion?

CFA Level II
#1

Page 82 on lessor preference, it reads

“Lessors would prefer a finance lease because, under an operating lease, lessors continue to show the asset and its associated financing on their balance sheets”

Is this wrong? I thought operating leases are off balance sheets. Should this sentence read the following instead?

“Lessors would prefer a finance lease because, under a finance lease, lessors continue to show the asset and its associated financing on their balance sheets”

Or am I confused between lessor and lessee recognition?

#2

The first statement is true. It says lessor , not lessee.

Under operating lease, the asset owner is the lessor so they show it on their balance sheet. The opposite is true for the lessee. i.e show only a periodic expense without assets.

In a finance lease the lessor sells the asset and it is now the lessee that shows the asset.

#3

Thanks!