ASC 842: Determining the lease term
Resources
AICPA logo
Cart
searchSearch
search
burger
AICPA logo
  • Home
group of people in a business meeting
Resources

ASC 842: Determining the lease term

5 years ago · 255.2 KB Download

Resource

available

Part of the CPEA Lease Standard Implementation Series – Part IV

We continue the CPEA lease standard implementation series as we focus on the major areas of change as a result of the new lease standard (FASB Accounting Standards Codification (FASB ASC) 842, Leases). In this report, we focus on the definition and determination of the lease term, which is a crucial aspect of the new standard affecting the classification of a lease, the determination of lease payments, the measurement of the lease asset and liability, and whether the lease meets the definition of a short-term lease. We explain each portion of the lease term, starting with the noncancelable period plus all of the following:

  • Periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option

  • Periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option

  • Periods covered by an option to extend (or not to terminate) the lease in which exercise of the option is controlled by the lessor

Download the report on understanding the lease term in ASC 842

File name: CPEA-ASC-842-lease-term.pdf

What did you think of this?

Every bit of feedback you provide will help us improve your experience

What did you think of this?

Every bit of feedback you provide will help us improve your experience

Related content