Lease accounting reset – Variable rents

PwC's accounting podcast · Jul 1, 2025 · 35m · transcript

We continue our lease accounting miniseries with a focus on variable lease payments, an area that can significantly influence lease classification and measurement. In this episode, we explore the complexities of usage-based and index-based payments, fair market rent adjustments, in-substance fixed payments, and more – providing insights into how these variable rents affect the accounting and disclosures.

In this episode, we discuss:

1:12 – Fixed versus variable lease payments and their accounting implications

7:13 – Fair market rent adjustments

9:37 – In-substance fixed payments, including…