Do you believe the new standard is an improvement from the perspective of (i) financial statement users and (ii) lessees? Explain your answer to each question.

Do you believe the new standard is an improvement from the perspective of (i) financial statement users and (ii) lessees? Explain your answer to each question. The new changes provide significant adjustments in how financial reporting is done. For financial statement users, the new standard requires a significant amount of both qualitative and quantitative new financial statement transparency, as the vast majority of operating leases are recorded in the balance sheet. Similarly, lessees must recognize and calculate the present values of coming lease payments to ascertain their lease liability. Notably, this is an improvement for the lessees. 2. Is CTC’s conclusion that the leases still should be considered operating leases appropriate under ASC 842? One of the classification criteria for financial leases requires that the present value of the total remaining lease payments be equal to or exceed the fair value of the underlying assets (PWC, 2021). CTC's total present value of the lease payments is estimated to be $23 million, while the fair value of CTC's leased assets is about $44 million. Notably, the present value of CTC’s lease payments ($23) is significantly less than the underlying asset’s fair value, indicating that the leases should still be considered operating leases under ASC 842