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Collate name lease

Collate name lease easily

Aug 6th, 2022

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How to collate name lease

4.8 out of 5

22 votes

Jordan Adelson, a senior manager at PwC's national office, discusses how lessees would record the amount of lease liability and the right of use asset for both operating and finance leases. Day 1 accounting involves the initial recording of the lease at commencement, while day 2 refers to accounting after the initial recording. An example is given with a lease term of five years, annual payments of $1.1 million, and a lease incentive of $100,000 provided by the lessor. The first lease payment is due at lease commencement. For details on accounting for finance leases on day 2, refer to the related video on CFO direct.

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