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Lease Accounting Workshop – Accounting Continuing Education
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Leasing is an important activity for many entities.
ASC 840, Leases, legacy accounting GAAP, requires lessees and lessors to classify their leases as either capital leases or operating leases and account for those leases differently.
This legacy guidance has been criticized for failing to meet financial statement users needs because it does not always provide a faithful representation of leasing transactions. In particular, it does not require lessees to recognize assets and liabilities arising from operating leases.
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