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The accounting industry has been wrestling with changing the rules regarding operating and capital leases

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The accounting industry has been wrestling with changing the rules regarding operating and capital leases. At one point it appeared that they were going to eliminate operating leases and treat all leases as capital leases. Before 1976 many companies did not record capital leases. Accordingly, is the accounting for capital leases misleading in that a leased asset is recorded as an asset when the company does not actually own the asset?

 

Paper#24602 | Written in 18-Jul-2015

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