Ns1
No Lifer
Quoted from a WSJ article
How does that work out?
The problem stems from the way most property (and equipment) leases cover a specific number of years -- the so-called primary term -- as well as a renewal period, known as the option term. In some cases, companies were calculating their lease expense for the primary term but depreciating over both the primary and option terms, which resulted in understating the total cost of the lease and thus boosted earnings.
How does that work out?