Herbein Q+A: Term Leases
The new lease accounting standard goes into effect in 2022 for private organizations, and it's essential that businesses start planning now. The standard is intended to account for all lease obligations on financial statements, rather than excluding operating leases as has been the standard. This change ensures that a company's financial situation is reflected as accurately as possible within the statements.
Our latest Herbein Q+A on is on Term Leases. Michael Malinsky reviews commonly asked questions we receive on term leases. In this video, we will address the following questions:
- What is the difference between a short-term and long-term lease and how they are accounted for under ASC 842?
- If I have a month to month lease does that mean it's not long term?
- What is the recommended way to handle month-to-month leases?
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Our Herbein Q&A video series answers the top questions we get on a wide range of business topics. Got a question? Send us your question today - email us at firstname.lastname@example.org.