Lessee right-of-use assets: 5 things you need to know

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04/02/19

There’s a new right-of-use asset on your balance sheet. Here are 5 things you need to know about assessing it for impairment.

In this week's episode Andreas Ohl, a partner in PwC's national office, joins Heather Horn to discuss "day 2" lease accounting considerations. After spending so much effort just to adopt the new standard, some companies may not have begun to evaluate what comes next. Andreas introduces a concept some companies may not have on their radar: how do you assess the new lease right-of-use asset for impairment.

Tune in to learn five things companies should know about the subsequent accounting by lessees for right-of-use assets, including:

  • 0:40 - An overview of the accounting guidance for the impairment of right-of-use assets
  • 1:25 - Unit of account considerations and the implications this determination has on the lessee's accounting
  • 2:25 - A discussion of how to group assets to be tested for impairment, including the related available policy election.
  • 8:30 - Impairment of right-of-use assets, including a discussion of triggering events and an overview of the two step impairment test
  • 11:17 - Common questions and answers relating to impairment testing of right-of-use assets

For more information, read our In depth, FAQ: Lessee accounting for right-of-use assets in operating leases.

You can also subscribe to our podcast series to stay current on other key technical accounting matters, business issues, current standard setting, and regulatory updates.


About our guest

Andreas Ohl is a partner in PwC's National office, where he focuses on mergers and acquisitions under US GAAP and IFRS. Andreas is chairman of the Business Valuation Standards Board at the International Valuation Standards Council, is a member of the working group that authored the AICPA's In-Process R&D guide, and has served as a member of the FASB's Valuation Resource Group.


About our host

Heather Horn is PwC’s National office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of a range of multimedia events, including PwC’s accounting and reporting weekly podcast and quarterly webcast series, as well as the power and utilities industry webcasts. With over 25 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.

Contact us

Heather Horn

US Strategic Thought Leader, National Professional Services Group, PwC US

David Schmid

International Accounting Leader, National Professional Services Group, PwC US

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