Lessors will classify leases with variable payments that do not depend on an index or rate as operating leases if a different classification would result in a commencement date selling loss (Day 1 loss).
Effective date | Public entities | All other entities |
---|---|---|
Annual periods – Fiscal years beginning after |
December 15, 2021 |
December 15, 2021 |
Interim periods – In fiscal years beginning after |
December 15, 2021 |
December 15, 2022 |
Early adoption allowed in fiscal years beginning after |
Yes, but not before adopting ASC 842 |
Lessors will classify a lease with variable payments that do not depend on an index or rate as an operating lease if:
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