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Right of use assets and liabilities are book ups for operating leases for real estate, equipment or software as examples that the company has. Formerly, you would just see the lease expense on the P&L for these items and ASC 842 changed this.
For tax, you reverse the P&L effect of the ROU adjustment and reclass any interest expense for a true lease as a lease/rental expense. If an asset was capitalized for books, you do not capitalize for tax. However, if the ROU adjustment is for a finance lease, you would need to capitalize for tax. There are other adjustments that may be required for deferred rent and lease incentives.
Huh
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