Considerations arising from changes in accounting standards with respect to leasing include:
A)Leases formerly classified as operating leases that were not reported on the balance sheet will now be reported as a liability on the balance sheet.
B)Impact on calculation of "non-GAAP" measures such as EBIT and EBITDA.
C)Differences between U.S.GAAP and IFRS.
D)All of the above.

Question

Quizplus · Accepted Answer

The changes in accounting standards with respect to leasing will result in leases formerly classified as operating leases being reported as a liability on the balance sheet, impacting the calculation of non-GAAP measures such as EBIT and EBITDA. Additionally, there may be differences between U.S. GAAP and IFRS in their treatment of leased assets and liabilities.

Considerations Arising from Changes in Accounting Standards with Respect to Leasing