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Leases

Lease accounting under ASC 842 and IFRS 16, including embedded leases, right-of-use assets, and lease liability measurement

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10 min read

Estoppel Certificates and SNDAs: The Two Tenant Documents That Verify a Rent Roll Before You Close

An estoppel certificate is a tenant-signed statement of rent, term, deposits, options, and defaults that legally blocks the tenant from later contradicting it; an SNDA is the three-party agreement keeping that lease alive through a foreclosure. This guide covers what a buyer should demand in each, the red flags that justify re-pricing a deal, and how confirmed deposits and prepaid rent land on the opening balance sheet.

Mike Thrift

real-estateproperty-managementleases
11 min read

Renting to Section 8 Tenants: How HAP Contracts, NSPIRE Inspections, and Split Rent Payments Work

A small landlord's walkthrough of the Housing Choice Voucher program — the lease-up sequence, the HAP contract you sign with the PHA, NSPIRE pass/fail inspections, how the payment standard and the tenant's roughly 30 percent income share split one rent into two payments, and what screening and source-of-income laws still allow.

Mike Thrift

real-estateproperty-managementleases
9 min read

Crop-Share vs. Cash-Rent Farm Leases: Who Bears the Risk, Who Pays the Tax, and How to Keep the Books

Cash rent lands on Schedule E with no self-employment tax, but a crop-share landlord who pays half the inputs and advises the tenant can trip the material-participation test and owe 15.3 percent on Schedule F. How each lease splits yield, price, and input-cost risk, with a worked 160-acre example and the settlement records both landlord and tenant need.

Mike Thrift

agriculturefarmingleases
12 min read

AASB 1061 Tier 3: An Implementation Playbook for Australia’s Smaller Not-for-Profits

AASB 1061 creates a simplified Tier 3 general purpose reporting framework for eligible Australian private-sector not-for-profits, mandatory for annual periods beginning on or after 1 July 2029. Here is what changes for leases, grant revenue, financial instruments, and donated assets — and the records, registers, and policies to build before the first Tier 3 year closes.

Mike Thrift

nonprofitfinancial-reportingcompliance
14 min read

Food Hall Operator Bookkeeping: Percentage Rent by Vendor, CAM True-Ups, and One POS Across a Dozen Kitchens

Percentage rent by vendor (8–15% of gross sales, booked as ASC 842 variable lease income), CAM pools with annual true-ups, and one POS settlement split across a dozen merchants — the account structure a food hall operator needs, plus the benchmarks (revenue per square foot, bar share, occupancy) that show a hall is working.

Mike Thrift

bookkeepingreconciliationpoint-of-sale
11 min read

Rent-to-Own Store Accounting: How to Classify the Lease, Book Repossessions, and Track the Fleet

Most week-to-week rent-to-own agreements are operating leases, not credit sales — the unit stays on your books as depreciating rental inventory, each payment splits into lease revenue, bundled services, and fees, and a repossession is a status change rather than a gain or loss. Covers lease-versus-sale classification, repossession entries, doubtful-rent allowances, and the payout math that decides whether a unit makes money.

Mike Thrift

leasesaccountingsmall-business
8 min read

Billboard and Outdoor Advertising Bookkeeping: Yield, Volume, and Why Your Ground Lease Is COGS

A bookkeeping guide for small billboard and out-of-home (OOH) operators — why yield and volume must be tracked separately, why ground leases belong in COGS tagged by board, how static and digital faces differ on depreciation and revenue recognition, and the five KPIs worth reviewing, including 85%+ utilization targets and a ~2.5-year payback benchmark on new digital builds.

Mike Thrift

bookkeepingsmall-businesscost-of-goods-sold
7 min read

FASB Just Quietly Exempted Equipment Leases From a Disclosure Rule You Probably Didn't Know Applied to You

FASB's ASU 2025-12 (Issue 5) excludes sales-type and direct financing lease receivables from the ASU 2022-02 vintage and loan-modification disclosures, effective for annual periods beginning after December 15, 2026. Equipment lessors still apply CECL to net lease investments but no longer need origination-year write-off tables for those leases.

Mike Thrift

accountingleasesfinancial-reporting
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