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hi Im Jillian pierce a senior manager in PwCs national office upon adoption of the new Lisas standard companies will bring virtually all Lisas on to the balance sheet the lease term is one of the key inputs that can impact the classification and measurement of Elise identifying the lease term may not always be as simple as it seems and getting this wrong could have a docHub impact on a companys accounting in this video Ill discuss some key considerations for determining the term of a lease and the relationship between the lease term and the short term lease exception that is available for lessees to determine the lease term first start with the non cancelable period of the lease then add any renewal option periods for renewals the lessee is reasonably certain of exercising third at any periods covered by a termination option if the lessee is reasonably certain it will not exercise that option fourth at any periods from an option to extend or not terminate the lease that are