declaration in a lease where the lesee can increase their particular term. The price for this extension is favorable. Its treated as a capital lease by accounting firms.
A clause in a lease contract enabling the lessee to extend the expression of this lease at a good price. A bargain restoration option calls for the lessee to deal with the lease as a capital lease in place of an operating rent. For accounting functions, a capital rent is addressed as a capital cost in place of a rental expenditure.