The definition of a lease in the new leases standard may impact the accounting for easements. To assist with the transition, the FASB issued a practical expedient for existing or expired easements not previously accounted for as leases.
An easement entered into (or modified) on or after the adoption of the new leases standard should be evaluated to determine whether it contains a lease. This In depth provides a framework to evaluate easement arrangements under the new leases standard.
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