ASC 842 is limited to leases of property, plant and equipment, including subleases of those assets (FASB,
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The new standard does not apply to leases of intangible assets, leases on biological assets - including timber, leases of assets under construction or leases of inventory (FASB, 2019).
Do you think companies could use these loopholes to their financial advantage or do you think the standard has enough constraints to effectively improve the transparency of financial reporting?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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