 Hello in this lecture we will define lease according to fundamental accounting principles wild 22nd edition the definition of lease is contract specifying the rental of property. So when we're thinking about a lease we're thinking about a piece of property and two people involved in that property one the lease or the person who owns the property and two the leasey who is going to have temporary use of the property for example we could have a transaction such as this where this is the piece of property we have the lease or the owner of the property allowing the usage of that property to the leasey as time passes then the leasey will then owe the lease or rent rent for the usage of that property at the end of the least period then the property would be then returned from the leasey to the lease or