Lease transition accounting for cease-use leases

There are occasions when a lessee might terminate an operating lease before the end of the lease term. One common reason is that the business hasn’t been a success—or hasn’t been as successful as planned. On the other hand, the reason may be because the business has done so well that larger space is needed to keep up with customers’ demands. Regardless of the reason, under FASB ASC 840, Leases, when an entity ceases use of an asset subject to