What question did this study set out to answer?

This research aims to analyze approaches for reporting current and noncurrent portions of lease obligations.

The Measurement of the Current Portion of the Long-Term Lease Obligations--Some Evidence from Practice.

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Evidence shows the change in present value approach is prevalent in financial reporting without necessitating guidelines.

This research aims to analyze approaches for reporting current and noncurrent portions of lease obligations.
Identified two approaches: change in present value and present value of next year's payments.
Examined current financial reporting practices.
Analyzed the impact of different reporting approaches on company rankings.
The change in present value approach is dominant in practice.
Adjusting reported numbers using the next year's payments method does not change company rankings.

Stickney et al. (1985) studied this question.

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