post about the changes in the treatment in operating lease accounting and how these new standards will impact debt covenants
Since the textbook has been published, FASB has issued new accounting standard guidance for operating leases. Read the two required reading articles in this module about leases listed below:
- Shannon, C. (2016). How will the new lease accounting standard impact loan covenants? (Links to an external site.) Equipment Leasing & Financing, Washington D.C., 32(4), 40-41.
- Sliwoski, L. (2017). Understanding the new lease accounting guidance (Links to an external site.). Journal of Corporate Accounting and Finance, 28(40), 48-52.
Post about the changes in the treatment in operating lease accounting and how these new standards will impact debt covenants. What is the impact to off-balance sheet reporting? Be sure to include your opinion on how this new standard impacts the reliability and transparency of financial statements.
Only needs to be 200-250 words.
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