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Valuation Tools Webcast #4: Capitalizing Leases
Published 4 months, 2 weeks ago
Description
Accountants routinely miscategorize leases and treat them as operating expenses (instead of financial expenses). In this webcast, I look at the process of capitalizing leases and how it affects earnings, debt and invested capital. I use Disney's annual report from 2012 to illustrate the process:
Disney annual report (2012): http://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/webcasts/Regression/DisneyAnnualReport2012.pdf
Spreadsheet: http://www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/webcasts/Leases/Disneyratings.xlsx
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