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Finance lease and operating lease liabilities should be presented separately from each other and from other liabilities on the balance sheet or disclosed in the notes to the financial statements along with the balance sheet line items in which those liabilities are included.

Finance lease and operating lease liabilities should be presented separately from each other and from other liabilities on the balance sheet or disclosed in the notes to the financial statements along with the balance sheet line items in which those liabilities are included.

For each operating lease, lessees will disclose operating cash flows as the sum of the liability reduction recognized over the 12-month period?which is the difference between the cash the lessee pays and the expense recognized.

Typically, assets rented under operating leases include real estate, aircraft, and equipment with long, useful life spans?such as vehicles, office equipment, or industry-specific machinery. Essentially, an operating lease is a contract for a company to use an asset and return it in a similar condition to the lessor.

Footnote disclosures are your company's plot; they tell the story of your company's events in a way that creates additional insights to readers.

The new lease standard increases the scope and complexity of the financial statement footnote disclosure with additional requirements for both quantitative and qualitative disclosures. While providing useful information, using a spreadsheet to create these disclosures becomes far more difficult than before.

Disclosure A general description of those leases. The basis and terms and conditions on which variable lease payments are determined. The existence and terms and conditions of options to extend or terminate the lease. The existence and terms and conditions of residual value guarantees provided by the lessee.