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In this video, Ashley Jane, a managing director at PwC's national office, discusses how to determine if an arrangement is or contains a lease under the new leases standard. It is important to understand that even if an arrangement is not a lease in form, it may still be subject to lease accounting. The new guidance now requires both the right to control the specified asset and obtain substantially all of its economic benefits for an arrangement to be considered a lease. This change is significant as virtually all leases will now need to be analyzed for balance sheet impact.
