Issue link: https://resources.tangoanalytics.com/i/1465890
2 Copyright ©2021 Tango. All rights reserved. Leverage this decision tree to determine which leases qualify under the new lease standards: FASB ASC 842 & IFRS 16 COMPLIANCE | LEASE INVENTORY About Tango As the market leader in integrated workplace management system and store lifecycle management. Tango has successfully partnered with over 500 leading companies and we apply that deep knowledge and those best practices to our world-class solution. As the only true end-to-end solution on the market, we help customers find, build and manage retail and office locations in a single suite, leveraging AI and deep learning techniques. Our cloud-based SaaS and mobile solutions are utilized across more than 140 countries by concepts ranging f rom those having small footprints to large global brands with more than 40,000 locations. Tango Lease was built f rom the ground up with FASB ASC 842 and IFRS 16 compliance and has been validated by leading independent accounting firms. Our unparalleled depth of industry experience combined with our leading solution has resulted in dozens of major corporations switching to Tango for their lease administration and accounting requirements. NO YES, YOU Is there an identified asset? An asset can be identified either explicitly or implicitly. If explicit, the asset is specified in the contract; if implicit, the asset is not mentioned in the contract, but the supplier can fulfill the contract only by the use of a particular asset – like in the case of embedded leases. YES Do you have the right to obtain substantially all the economic benefits from the usage of the asset? Economic benefits can be obtained directly or indirectly (i.e. using yourself or subleasing). Benefits include the primary output and any byproducts as well as payments f rom third parties that relate to the use of the identified asset. Do you or does the Supplier have the right to direct how and why the asset is used throughout the agreed upon period of use? Do you have the right to operate the asset? Did you design the asset? Your Contract does not contain a Lease YES NEITHER NO Your Contract contains a Lease YES YES NO YES, SUPPLIER NO