Lessees obligation to meet the definition of liability

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Reference no: EM131222661

Assume you are the occupant of a building for which you have just entered into a 2-year lease agreement. Due to the short term nature of the arrangement; the lease will likely be classified as an operating issue. The FASB is currently proposing fundamental changes to lease accounting, based in part on their view that a lessee’s obligation to make payments over the lease period meets the definition of a liability. Using language from CONN 6, state whether you believe the lessee’s obligation meets the definition of a liability. Analysis- Why might a lessee’s obligation to meet the definition of a liability?

Reference no: EM131222661

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