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foreign [Music] Ill explain the different types of leases under ASE 842 financing and operating and then Im going to give you the secret recipe for the journal entries so lets take a look first at what a financing lease is and what an operating lease is so in this slide we see that we have financing leases and operating leases now historically under 840 ASC 840 weve had Capital leases going forward under 842 well Now call those financing leases and weve had operating leases in the past will continue to use that same name so before I tell you the definition of a financing lease let me just say that whatever agreements you have the lease agreements you have that are not financing leases they will be operating leases so we need to know what a financing lease is so that we can know not only what those are but what an operating lease is as well so lets look at what constitutes a financing lease one is one that transfers ownership by the end of the lease that makes sense again you kn
