Are US Tech Giants Concealing Billions in Debt? Could Indian Firms Follow Suit?
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US Tech Giants May Be Hiding Billions in Debt; Indian Firms Face Tighter Rules
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CNBC TV18•28-02-2026, 09:54
US Tech Giants May Be Hiding Billions in Debt; Indian Firms Face Tighter Rules
•US tech giants like Amazon, Microsoft, and Meta have committed nearly $1 trillion in future lease payments for AI infrastructure.
•A Moody's report flags that $662 billion of this is in uncommenced leases, potentially hidden from reported debt under US GAAP.
•US GAAP allows portions of lease obligations to stay off balance sheets, especially with opaque residual value guarantees.
•Indian accounting standards (Ind AS 116) are much stricter, requiring most long-term leases and expected residual value guarantee payments to be recognized upfront.
•Experts confirm that replicating US-style off-balance-sheet treatment for debt is significantly harder for Indian companies.