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hi Im Suzanne Stefani a director in PwCs national office today were continuing our Lisas video series with a discussion on variable lease payments these payments will impact lease measurement and classification for a lessee under the new leases guidance at least liability and a right of use asset will be recorded on the lessees balance sheet for virtually all of its leases in this video Ill cover what our variable lease payments which of these payments are included when you measure and classify the lease and how to account for changes in these payments so to start what our variable lease payments theyre any payments need for the right to use an asset that vary because of changes and facts or circumstances occurring after the commencement date other than for the passage of time variable lease payments are broken down into two categories the first category is payment that changed based on an index or a rating such as the Consumer Price Index or CPI or a benchmark interest rate suc
