An entity may establish an accounting policy to not apply the balance sheet recognition requirements of FASB Accounting Standards Codification (FASB ASC) 842, Leases, for short-term leases. As provided for in FASB ASC 842-20-25-2, instead the lessee recognizes the lease payments in profit or loss on a straight-line basis over the lease term (short-term lease exception). In essence, this accounting is equivalent to operating lease accounting under legacy lease guidance in FASB ASC 840, with the same title. This accounting
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Not a Short-Cut! Short-Term Lease Exception: Complexities & Peer Review Findings
Feb 19, 2025 · 1 min read
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Download the CPEA Report - February 2025 - Not A Short Cut - Short-Term Lease Exceptions
File name: CPEA Report - February 2025 - Not A Short Cut - Short-Term Lease Exceptions - Complexities and Peer Review Findings.pdf
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