Lease Term Reduction with Liability Remeasurement

Modify leases to shorten the lease term in accordance with ASC 842 lease accounting standards. Account the lease modification under ASC 842 by remeasuring the lease liability. The carrying amount of the right-of-use asset is adjusted by the amount of the remeasurement of the lease liability.

The following screenshots describe the process of amending a lease to account for term reduction with liability remeasurement.

Create Amendment Page

Create Amendment Page

Update Lease Details Page

Update Lease Details Page

Business benefits include:

  • Enable compliance with ASC 842 lease accounting for lease term reduction.
  • Increase operational efficiency with streamlined lease amendments.

Steps to Enable

Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.

Offering: Financials

Access Requirements

You do not need any new role or privilege access to set up and use this feature.