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In this tutorial, Jordan Adelson, a senior manager at PwC's national office, explains how lessees record the lease liability and right of use asset for both operating and finance leases. Day 1 accounting is the initial recording of the lease, while day 2 accounting is done after the lease is initially recorded. Using an example with a five-year lease term and annual payments of $1.1 million, Jordan walks through the accounting process. For further details on day 2 accounting for finance leases, viewers are directed to the finance lease video in PwC's leasing series on CFO direct dot com.
