The capital leases or the finance leases are indeed on the balance sheet. The operating leases are reported on the income statement and the necessary disclosure is provided in the notes of the accounts. But yes it’s correct, the capital leases need to be reported on the balance sheet.
The accounting standard say that although the legal nature of the contract might say that it’s a lease, the economic reality might indicate that the asset is actually owned by the business. Therefore, if the lease is considered a capital lease, then it will be reported on the balance sheet and will be depreciated over it’s useful life.