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In this video tutorial, hosts Sarah Cage and Adam Olson welcome Ty Cotter, a resident lease accounting specialist, to discuss embedded leases and the implications of ASC 842 for private companies that are adopting the new leasing guidance in 2022. Ty shares his expertise from the last few years implementing ASC 842, focusing on identifying all leases. The discussion aims to clarify key considerations for companies that have already adopted the guidance and those preparing to do so. Adam also emphasizes the importance of defining what constitutes a lease under U.S. GAAP to set the stage for their conversation on embedded leases.