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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Fundamentals Of Financial Management

ISBN: 9780357517574

16th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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