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going into 8 42 I think the easiest way to see how 842 is going to impact any business is just by looking at the impact to the balance sheet assuming this company has only operating leases this is how the 40 balance sheet would look like compared to 842 under 840 those leasing obligations were tucked away in this deferred rental item which is representing only a small small portion of the leasing obligation because it was representing the difference between cash outflow and that straight line rent expense 842 says oh no no no everything must come on the balance sheet in the form of a writer used asset and a short-term and long-term lease liability as you can see fundamentally changing the way the balance sheet looks and feels
