11 Jun Need Help In Accounting
Capital Leases and Operating Leases
The new leasing standard accounting Standards Update (ASU) 842 will require lessees to recognize the assets and liabilities on the balance sheet created by the leases. This standard update will eliminate the primary form of off-balance sheet accounting and require additional disclosures on leasing transactions. Use the Internet to research the provisions of (ASU) 842 applicable to the lessee. Identify two (2) material differences in lease reporting under the new standard and assess the impact on financial reporting. Speculate on the future impact the implementation of the new standard will have on investors.
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