When analyzing a company's performance, it's critical that you understand the underlying business and accounting context and their consequences for the conclusions from your analysis. One such context is the company's accounting for its leases.
Topics:
- What are leases?
- What are capital and operating leases?*
- Why is it important to capitalize operating leases prior to analysis?
- How do you capitalize operating leases?
Capitalizing Operating Leases. [45 min]
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Additional Materials:
Video slides [pdf]
* Capital leases are also called financing leases.
