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What is an Operating-Type Lease which BEC offers?

April 26, 2017BEC lease offers

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What is an Operating-Type Lease which BEC offers?

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The Company’s preferred method of leasing is: Operating Type Lease (OTL) or Noncapitalization Method • Hardware revenue recognized as an annuity over the life of the lease. • Upon signing, the leased instrument is transferred from inventory to Property Plant and Equipment as “Instruments Subject to Lease”. • Hardware related cost of sales is recognized over time, based on a depreciable amount over the term of the Lease Contract. • Consumables & Service revenue recognized monthly over the life of the contract. • All monthly billings are recorded in Trade Receivables.