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LEASELESSOR INFORMATION for CYCLE Nj

LEASELESSOR INFORMATION for CYCLE Nj

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hi thank you for joining us for this episode of our ultimate lease accounting series in our last video we went over Finance lease accounting and walked through a step-by-step example during this session we will cover operating lease accounting and again go through an example of how to account for an operating lease staff let's get started we already know that operating lease accounting is where the significant changes for ASD 842 are let's talk about the income statement and cash flow treatment of an operating lease first under ASD 842 to account for an operating lease the last day will recognize a single lease cost over the term of the lease generally on a straight-line basis and secondly all cash payments should be presented as operating activities on the statement cash flow the straight line lease costs for an operating lease is calculated by dividing all of the required cash payments by the total number of periods in the lease term this single lease cost equates to

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