On February 25, 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-2, which intended to improve financial reporting related to leasing transactions. ASU 2016-2 (ASC 842) affects all companies and other organizations that lease assets such as real estate and manufacturing equipment. The new guidance responds to requests from investors and other financial statement users for a more accurate representation of an organization’s leasing activities.
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