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How to compile bates lease

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In this video tutorial, Jordan Adelson from PwC's national office discusses how lessees should record the amount of the 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 accounting refers to the accounting for the lease after it is initially recorded. An example with a lease term of five years, annual payments of $1.1 million, and a lease incentive of $100,000 is used to illustrate the concepts.Refer to the lessee finance lease video on CFOdirect.com for details on day 2 accounting for finance leases.

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