4a)

The FASB decided to issue the new lease accounting standard because:

Choose the right answer below?

1. The old standard made no distinction between short term and long-term leases.
2. The old standard allowed companies to use long-term operating leases to finance assets without showing a liability on the balance sheet.
3. The FASB wanted to encourage companies to borrow money to purchase assets rather than lease them.
4. The old standard was too complex and needed to be simplified.