When implementing the new leases standard (ASC 842), a question has arisen regarding the appropriate index or rate a lessee should use for a variable lease payment when measuring the lease liability of an operating lease in transition.
The SEC staff recently concluded that a company may use the current index or rate. However, if this represents a change from what has been done for footnote disclosure purposes for operating leases under the prior leases guidance, it would be considered a change in accounting policy and may require preferability.
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