Lessors: the impact of operating lease receivable collectibility

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In depth , PwC US Jul 18, 2019

Read how the new leases model should be applied to a lessor's operating lease receivables.

Lessors can apply a general reserve to operating lease receivables that are probable of collection.

When implementing the new leases standard (ASC 842), a question has arisen regarding whether lessors can continue to record a general reserve for operating lease receivables that are probable of collection. The FASB staff recently concluded that a lessor could elect an accounting policy to continue or discontinue recording a general reserve. Several related policy elections are available that may impact how a lessor recognizes revenue.

For a deeper discussion on operating lease receivables under the new leases standard, please contact:

Scott Tornberg

Partner, National Professional Services Group, PwC US

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Ashima Jain

Managing Director, National Professional Services Group, PwC US

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Jordan Adelson

Director, National Professional Services Group, PwC US

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David Schmid

International Accounting Leader, National Professional Services Group, PwC US

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