Lessor vs lessee- What is these terms?

[rajivkumar]

I’m reviewing accounting standards and need some clarity on the treatment of lessor vs lessee in financial statements.

 

[alenaghose]

A lessor, sometimes referred to as the owner of property, equipment, or vehicles, is a party that grants another party the right to use the property under a lease agreement. The individual or business that hires or rents the asset and pays a certain amount to the lessor on the usage of the asset is known as the lessee.

 

[Jarwish]

A lessor is the property owner who grants the lease, while a lessee is the tenant who pays rent to use the property under the lease agreement.

 

[nikhilrajoria]

The owner who rents out the property or equipment is known as a lessor, and the person/company that rents the property or equipment is known as the lessee.