Tag Archives: lease accounting

Accounting for Leases with Termination Options

In our last blog, we explained how to account for leases where the tenant must take additional property (or expand) in the future. Today’s blog addresses accounting for leases which include a termination at will option. It was inspired by the following … Continue reading

Posted in Lease Accounting | Tagged , | Leave a comment

Using Excel to Calculate Present Value of Minimum Lease Payments

This is the ONE thing you MUST be able to do under the new lease accounting rules: The new lease accounting rules require the vast majority of leases to be capitalized, and the capitalized amount is calculated as the present … Continue reading

Posted in Lease Accounting, Minimum Lease Payments Using Excel, Present Value of Lease Payments with varying lease payments, Present Value of Minimum Lease Payments | Tagged , , | Leave a comment

Accounting for Subleases under GAAP: The CORRECT way

Have you ever leased a space, decided you no longer require it, then subleased the space to a third party? Did you continue making payments to the landlord under the initial lease while collecting payments from the third party under … Continue reading

Posted in Lease Accounting | Tagged , | Leave a comment

Effective Date SET for New Lease Accounting Rules!!!

On November 11, 2015, the FASB set the effective date for the proposed new leasing standard; it is effective in 2019 for public companies and 2020 for private companies. Early adoption is permitted. The final standard is to be published … Continue reading

Posted in Lease Accounting, New Lease Accounting Rules, Uncategorized | Tagged , , | Leave a comment

How To Identify Contracts With Embedded Leases

The following decision tree shows how to determine if a service contract has an embedded lease. Click here for a detailed explanation of the decision tree. It explains in detail implicit and explicit identification, right of substitution and transfer of control. … Continue reading

Posted in Lease Accounting | Tagged , , , , | Leave a comment