Tips and Strategies for Estimating the Lease Term including Evergreen Leases Under ASC 842

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02 ( “ASC 842”), Leases, which provides new guidelines that change the accounting for leasing arrangements.

The primary purpose of the standard is to address the current accounting treatment of operating leases which are deemed to be off balance sheet financing arrangements and are only disclosed via a company’s financial footnotes in the “Commitments and Contingencies” footnote.

Below eBook includes detailed description of following points:

  • Lease term under ASC 842

  • Determining the Lease Term, Considering Extension, Renewal, and Early Termination Clauses and Early Termination Clauses

  • Evergreen Leases

  • Estimation strategies

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