Nugget: Frank Voisin on Changes in Lease Accounting

Found on Frank Voisin´s website, Frankly Speaking:

Lease accounting may not be the sexiest subject, but it appears that recent proposals to overhaul the way in which companies account for their operating leases are gaining steam and will have a major effect on the way investors analyze retailers, ship operators and airlines.

Under the current rules, only capital leases are included on a company’s balance sheet, while operating leases are left in a note to the financial statements, undiscounted and clumped together in buckets of years with a giant terminal bucket, making their analysis prone to error.

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