This excerpt taken from the PRXL 8-K filed Oct 27, 2008.
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease. Incentives from lessors are recognised as a systematic reduction of the charge on a straight line basis over the lease term.
(formerly ClinPhone plc until 14 August 2008)
Notes to the Consolidated Financial Statements