Question: The lease rules discussed in this chapter have an effective date for fiscal years beginning after December 15, 2018. Under U.S. GAAP, the accounting treatment

The lease rules discussed in this chapter have an effective date for fiscal years beginning after December 15, 2018. Under U.S. GAAP, the accounting treatment of operating leases for the lessee were quite different than these new rules. Under the old rules, lessees did not include an asset or a liability on their balance sheets related to the lease.

Required
Basing your answers on the Basis for Conclusions for ASU 2016-02, Leases (and including citations), explain FASB's reasoning behind changing the accounting treatment for lessee's operating leases.

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