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Use the Internet to research the current provisions and proposed changes reflected in the exposure draft for lease accounting under generally accepted accounting principles (GAAP) and international financial reporting standards (IFRS). Answer the following questions based on your results.
1) Analyze the results of the proposed changes to lease accounting on operating and capital leases. Identifying how the right-of-use model will impact financial reporting, indicate how companies are likely to manage the change in reporting.
2) Discuss recommendations you would make to chief financial officers (CFOs) of retailers, service providers, and other businesses that lease several locations or have substantial leases of real estate or other assets. Indicate the pros and cons of each approach.
1) The assets and liabilities are going to be recognized in the balance sheet and this wouldeliminate operating leases. For the leases that were previously classified as operatingleases, the…
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