Issue link: https://resources.tangoanalytics.com/i/1529537
Lessee leases acquired in an asset acquisitions ▪ Reassesses Lease Term ▪ Remeasures the lese liability at acquirer's discount rate ▪ Do not reclassify the lease unless, − The lease is modified, or − There is a change in the reasonably certain assessment of lease the term or purchase options ▪ (Note: that in a business combination, the new lessee/acquirer would only reassess classification if lease is modified but would not reassess if term is changed) ▪ If purchase price is different from net assets acquired, the difference is allocated to all assets and liabilities acquired. − This may result in a different adjustment to the ROU asset then would occur in connection with a business combination. Acquirer RSM | 9