With regard to the potential change to account for most leases on the balance sheet under ASC842, provide the following:

What would be the impact on the financial statements of Delta Airlines, Inc. if all its leases were required to be recorded on the balance sheet as recently adopted ASC842 (assume that Delta consumes more than an insignificant portion of its leased airplanes) ? Would this be an improvement in transparency?

Answer rating: 100% (QA)

The impetus behind ASC 842 was to improve transparency by providing lenders and investors increased visibility into an entitys lease obligations As a result almost all leases must be accounted for on ... View the full answer