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Under the new steerage, a lessee will be necessary to acknowledge property and liabilities for leases with lease terms of greater than twelve months. Consistent with latest Normally Approved Accounting Principles (GAAP), the recognition, measurement, and presentation of costs and hard cash flows arising from a lease by a lessee mostly will rely on its classification to be a finance or functioning lease.

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The ASU impacts all companies and various companies that lease assets including real estate, airplanes, ships, and design and producing equipment.

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