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Lessee accounting for short-term leases is functionally similar to the accounting for functioning leases underneath FASB 13, demanding entries to become posted only to account for the outflow of methods in the course of Every period of time. For governmentwide and proprietary fund monetary statements (accounted for applying financial resources measurement concentrate), these payments is going to be recognized being a rent expenditure, whilst for modified accrual fund economical statements, the rent payments might be recorded as expenses. Brief-expression leases involve no extra disclosures.
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, so it ought to be included in the calculation. Even so, usually, the effect on that calculation needs to be minimum as the balances for the right-to-use lease asset and the lease legal responsibility might be related.
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