Type A & Type B Leases under New Lease Accounting Rules

Type A & Type B Leases under New Lease Accounting Rules

In May 2013, the FASB and IASB released an Exposure Draft proposing a new approach to lease accounting. The proposed accounting rules will require recognition of all leased assets as “Right of Use” assets (ROU assets), and recognition of a lease liability (an...
Lease Commencement Date: How to Know when a Lease Starts

Lease Commencement Date: How to Know when a Lease Starts

When does a lease start for accounting purposes? How can you tell when the lease starts and when is the lease end date? Every lease has a “start date,” but many people, accountants included, do not understand what that date really is or how to find it....
Accounting for Leases with Termination Options

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 question we...