这一篇主要给大家讲一讲discount rate了,这个我觉得是going forward里面比较critical的。 首先先讲一个最简单的。Private business我们是可以用一个risk free rate的。但这个一定是我的environment相关。如果我是在中国租,我的risk free rate应该是看国债也好,我就不能去看美国的treasury bond。那么对于上市公司的话,...
Public company lessees also invested significant resources in the determination of appropriate discount rates, typically the incremental borrowing rate, to apply to leases upon implementation of Topic 842. Many public companies found that determining incremental borrowing rates for their leases required accu...
ASC842, also known as Topic 842, is the newFASBlease accountingstandard and dictates how organizations reporting under USGAAPshould record the financial impact of their leases. Among other changes, the new standard requires organizations to record the majority of their leases on the balance sheet. ...
The discount rate to use for the calculation is either the rate implicit in the lease (if known) or your organization’s incremental borrowing rate (IBR). Privately-held firms also have the option to use a risk-free rate. Keep in mind that the assumptions you make about lease options at ...
To address concerns that it is costly to determine a discount rate, nonpublic entities may elect an accounting policy to use a risk-free rate to measure liabilities. ASU 2018-01 In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842): Land Easements Practical Expedient for Transiti...
Determining the appropriate date by which the ASC 842 requirements must be applied to the public-company filing. Establishing the discount rate used to measure the leases as a public company. Applying the business combination model when an entity goes public by being acquired ...
Elected to use the risk-free rate as the discount rate when the rate implicit in the lease is not readily determinable. Did not elect the hindsight expedient and does not have land easements. Will elect the short-term lease exemption, when applicable. ...
then the lease modification would be accounted for in combination with the original lease. In a lease modification not accounted for as a separate contract, the lease liability should be remeasured at an updated discount rate and assessed on the effective date of the reassessment event or modifica...
What it means: This would prevent a company — either a lessee or lessor — from having to reassess the lease classification or remeasure the discount rate. Prime examples of these arrangements would include the early termination of vehicles under a fleet agreement or the modification to reduce ...
Interest rate caps and swaps are reported at their fair value, following derivative accounting under ASC 815. Rental income consists of minimum base rent, straight-line rent adjustments, amortization of tenant inducements, and amortization of above- and below-market in-place leases. ASC 842 – ...