We continue our lease accounting miniseries with an episode focused on modifications and terminations. From determining whether a change results in a new lease to navigating remeasurement requirements, we share practical insights and key reminders for applying the guidance.
In this episode, we discuss:
- 1:12 – How to determine if a lease modification should be treated as a new lease or a remeasurement of the existing lease
- 10:31 – Key accounting steps in a lease modification and remeasurement
- 17:49 – Differentiating a lease termination from a modification
- 20:59 – Example of a lease modification for downsizing leased space
- 24:07 – Modifications to combined versus separate lease contracts
For more information, see chapter 5 of our Leases guide. You can also listen to the first episode in this series, Lease accounting reset - Presentation and disclosure. Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to for the latest thought leadership.
About our guests
Marc Jerusalem is a managing director in PwC’s National Office specializing in leasing. Marc consults with clients on complex lease accounting issues and is a frequent contributor to many related PwC National Office publications.
Suzanne Stephani is a director in PwC’s National Office specializing in the statement of cash flows as well as the application and interpretation of the accounting guidance related to financing and leasing transactions.
About our host
Heather Horn is the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series.
Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com
Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.
Popular Podcasts
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.