About this episode
We continue our lease accounting miniseries with an episode focused on modifications and terminations. From determining whether a change results in a new lease to navigating remeasurement requirements, we share practical insights and key reminders for applying the guidance. In this episode, we discuss: 1:12 – How to determine if a lease modification should be treated as a new lease or a remeasurement of the existing lease 10:31 – Key accounting steps in a lease modification and remeasurement 17:49 – Differentiating a lease termination from a modification 20:59 – Example of a lease modification for downsizing leased space 24:07 – Modifications to combined versus separate lease contracts For more information, see chapter 5 of our Leases guide. You can also listen to the first episode in this series, Lease accounting reset - Presentation and disclosure . Be sure to follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to for the latest thought leadership. About our guests Marc Jerusalem is a managing director in PwC’s National Office specializing in leasing. Marc consults with clients on complex lease accounting issues and is a frequent contributor to many related PwC National Office publications. Suzanne Stephani is a director in PwC’s National Office specializing in the statement of cash flows as well as the application and interpretation of the accounting guidance related to financing and leasing transactions. About our host Heather Horn is the PwC National Office Sustainability and Thought Leader, responsible for developing our communications strategy and conveying firm positions on accounting, financial reporting, and sustainability matters. In addition, she is part of PwC’s global sustainability leadership team, developing interpretive guidance and consulting with companies as they transition from voluntary to mandatory sustainability reporting. She is also the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.