Lease Accounting in LBOs Question
I know this topic has been asked about before but just wanted to revive and see if any accounting wizards in PE know of the simplest way to approach.
I'm building a model for a business that has financing and operating lease assets on the balance sheet, as well as a corresponding operating lease liability (both current and non-current). I feel like I conceptually understand these leases, but want to confirm with others how these accounts should be forecasted (mainly the ROU asset) and how that flows through to the financial statements and impacts the model. Any guidance here would be helpful, as this isn't a topic I've encountered often.
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