Question: Why was the distinction between an operating lease and a financial lease significant prior to the change in accounting standards near the beginning of 2019?

Why was the distinction between an operating lease and a financial lease significant prior to the change in accounting standards near the beginning of 2019?

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Financial lease assets and obligations would not appear in the main body of a balance sheet, but an operating lease would.

An operating lease payment would not be included in an income statement, but a financial lease payment would.

A financial lease payment would not be included in an income statement, but an operating lease payment would.

Operating lease assets and obligations would not appear in the main body of a balance sheet, but a financial lease would.

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