If a lease is interpreted as a mutually unperformed executory contract, it can be argued that an asset and liability do not exist for the lessee.

Name: If a lease is interpreted as a mutually unperformed executory contract, it can be argued that an asset and liability do not exist for the lessee.
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In accounting, a mutually unperformed executory contract implies that neither party has fulfilled their obligations, suggesting that no asset or liability should be recognized until performance occurs.

If a Lease Is Interpreted as a Mutually Unperformed Executory