One alleged advantage of leasing voiced in the past was that it kept liabilities off the balance
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One alleged advantage of leasing voiced in the past was that it kept liabilities off the balance sheet, thus making it possible for a firm to obtain more leverage than it otherwise could have. This raised the question of whether the lease obligation and the asset involved should be capitalized and shown on the balance sheet. What is the current guidance of ASC 842 for capitalizing leases?
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ASC 842 or Accounting Standards Codification 842 provides guidance on lease accounting standards issued by the Financial Accounting Standards Board FA...View the full answer
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Related Book For
Fundamentals Of Financial Management
ISBN: 9780357517574
16th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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