Originally Posted by CAcop
Exactly my point. His company hedges his bets by having a finanicing company pay them up front. The financing company takes the hit if the government welches. Of course this is not without cost. I am sure it is pased onto the consumer/taxpayer.
Exactly wrong. You don't know much about revenue recognition in the post SarbOx world.
That is how a capital lease works if you buy a car as well.
We design manufacture and sell medical instrumentation. We don't hold paper. We don't take payments and we don't extend terms beyond 30 days because they all affect revenue recognition. You buy it from us or you buy it from the leasing company and they buy it from us.
Muni leases are relatively rare and generally only used when the institution does not have the capital available to spend and has a significant need.
So you asked the question with an agenda, formed an uninformed opinion based on my honest answer and you're still wrong.
What was your point again? Contract law or finance?