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Under US GAAP, for a long-term operating lease, the lessee reports:
A
after inception, the lease payment split between financing and operating outflows on the statement of cash flows.
B
at inception, a right-of-use asset and a lease liability calculated as the undiscounted value of its fixed lease payments.
C
after inception, a single lease expense each year, which is a straight-line allocation of the cost of the lease over its term.
