Intermediate Financial Accounting II
The lease term refers to the duration for which a lease agreement is in effect, starting from the commencement date and ending on the termination date specified in the agreement. This period is crucial as it influences the classification of the lease, the financial accounting treatment by lessees and lessors, and the disclosure requirements. Understanding the lease term is essential for determining payment schedules, assessing rights and obligations, and evaluating potential subleases.
congrats on reading the definition of lease term. now let's actually learn it.