The FASB maintained, on the other hand, the distinction between operating and finance leases under ASC 842 in order to mitigate the front-loading effect of the new standard in the lessee’s income statement (PwC, 2016). Although ASC 842 moves towards a more principles-based accounting for ...
subsequently, when these bubbles burst fair value exacerbates negative spirals. By using financial theories to value assets, it raises the question as to whether accounting is trying to be finance (Power, 2010). The reliance on finance theory creates an interdependence between accounting and finance,...