The FASB approved a final statement on lease accounting that was issued in February 2016. The statement results in the culmination of a decade’s work to dramatically transform how companies account for leases. In particular, most leases will be capitalized, resulting in billions of dollars of assets and liabilities being recorded on company balance sheets. Upon completion of this course, you should be able to identify the changes that will be made under the proposednew lease standard; recall how lessees wouldwill account for leases under the new standard; identify the items that are considered part of the lease payment under the new standard; recall how the lessee calculates the liability for a lease under the new standard; recognize how existing leases will be handled when the new statement becomes effective is adopted; determine the effect the new standard may have on future lease terms; and recognize how the new standard may affect book/tax differences, EBITA, and debt-equity ratios.