What question did this study set out to answer?

The study aims to assess the income statement effects of capitalizing operating leases, which were traditionally considered off-balance sheet financing.

June 15, 2026Accounting Horizons

Operating Leases: Income Effects of Constructive Capitalization.

View Full Paper

Ask AI

Bookmark

Authors

EIEugene A. ImhoffUniversity of Michigan RLRobert C. LipeUniversity of South Carolina DWDavid W. WrightCentre for Immunity, Infection and Evolution

Discussion

Member takes

Implication

Randomized trial demonstrates income statement impacts of capitalizing operating leases, suggesting a need for revised accounting standards.

Key Points

The study aims to assess the income statement effects of capitalizing operating leases, which were traditionally considered off-balance sheet financing.
Estimated impacts on operating income and net income due to constructive capitalization of operating leases.
Analyzed previous literature on lease accounting to establish a framework for current analysis.
Focused on both balance sheet and income statement effects of operating leases.
Findings indicate that the income effects of capitalizing operating leases are material.
Constructive capitalization significantly alters perceived operating and net income.
The analysis supports the notion that regular practices in accounting may need to change to reflect these findings.

Cite This Study

Imhoff et al. (1997) studied this question.

synapsesocial.com/papers/6a2f98f8a1cfeec490829d62 https://doi.org/10.2308/ah-9707162214

View Full Paper

Ask AI

Bookmark

Implication

Randomized trial demonstrates income statement impacts of capitalizing operating leases, suggesting a need for revised accounting standards.

Operating Leases: Income Effects of Constructive Capitalization.

Discussion

Member takes

Implication

Key Points

Cite This Study

Operating Leases: Income Effects of Constructive Capitalization.

Discussion

Member takes

Implication

Key Points

Cite This Study

Also Consider

Also Consider