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Lease Accounting, Financial and Other Covenants

This article summarizes the new accounting model for lessees and addresses the impact the new model may have on financial and other covenants typically found in financing agreements, where the lessee is the borrower.

24 minute read December 21, 2010 at 01:29 PM
By
Gian-Michele a Marca and Barry A. Graynor
Lease Accounting, Financial and Other Covenants

In August 2010, the FASB and IASB issued a joint exposure draft ' Leases. The exposure draft creates a new accounting model for both lessees and lessors, and eliminates the concept of operating leases.

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