Client AlertIntroduction
The Financial Accounting Standards Board’s (FASB) recent lease accounting standards (ASC 842) are impacting toll agreements for stand-alone battery energy storage systems (BESS). These standards require offtakers (lessees) to recognize assets and liabilities arising from an operating lease with a term greater than 12 months, which affects the lessees’ initial measurement of the lease liability. Such lease liability is the present value of the unpaid lease payments, disco...
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