- The modification grants an additional right of use that was not in the original contract, such as additional floors or a new asset.
- The lease payments increase by an amount commensurate with the standalone price for the additional right of use, adjusted for the circumstances of the contract.
Modifications
Create new accounting lease
Account for a modification as a separate contract under ASC 842-10-25-8.
Use this type when a modification is accounted for as a separate contract under ASC 842-10-25-8. Both conditions must be met: