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ASC 842 – Evaluating Renewal Options and the “Reasonably Certain” Threshold

ASC 842 – Evaluating Renewal Options and the “Reasonably Certain” Threshold

by Amanda Muna | Apr 10, 2022 | Lease Administration, Blog, ASC 842

For the adoption of ASC 842, and when future leases are added or modified, your team will need to assess whether a renewal option is “reasonably certain” to be exercised.  “Reasonably certain” is intended to be a high threshold and reflects the existence of a...

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