Leasing real estate? What lessees need to know

PwC's accounting podcast

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In this next episode in our miniseries on lease accounting, we focus on lessee accounting for real estate leases. From lease incentives to build-to-suit arrangements and more, we cover some of the key areas that lessees should consider in accounting for real estate leases.
In this episode, we discuss:

• 03:25 - Lease incentives
• 08:23 - Distinguishing between lessee and lessor assets
• 11:28 - Accounting for lessee assets
• 13:50 - Accounting for lessor assets
• 17:20 - Determination of the lease commencement date
• 19:06 - Multiple units of account in a lease
• 21:51 - Build-to-suit arrangements

For more information on these topics, read chapters 3, 6, and 8 of our Leases guide. Also, check out other episodes in our miniseries covering lease classification and “day 2” lease accounting. Additionally, follow this podcast on your favorite podcast app for more episodes.
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.
Marc Jerusalem is a PwC National Office managing director specializing in leasing. Marc consults with clients on complex lease accounting issues and is a frequent contributor to many related PwC National Office publications.
Heather Horn is the PwC National Office Sustainability & 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 [e-mail].

Rozdziały

1. Lease incentives (00:03:25)

2. Distinguishing between lessee and lessor assets (00:08:23)

3. Accounting for lessee assets (00:11:28)

4. Accounting for lessor assets (00:13:50)

5. Determination of the lease commencement date (00:17:20)

6. Multiple units of account in a lease (00:19:06)

7. Build-to-suit arrangements (00:21:51)