The Value of Identifying Operating Leases

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Judson Caskey is an associate professor of accounting at the University of Texas, McCombs School of Business. N. Bugra Ozel is an assistant professor of accounting at the University of California Los Angeles. Discussing how lease accounting has been the subject of much controversy. Both U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) currently separate leases into operating leases or capital/finance leases.