THE NEW LEASE STANDARD'S IMPACT ON THE BALANCE SHEET: AN INDUSTRY ANALYSIS

摘要

For many decades, lessees frequently designed their lease agreements to ensure the contracts failed the capitalization criteria in the leasing standard and, therefore, were accounted for as operating leases. By so doing, lessees gained access to the economic resources provided by these leased assets without having to report the assets, and more importantly, the obligations from the rental payment commitments on their balance sheets.