Concatenate Company Lease For Free

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Variable lease payments based on an index or a rate include, for example, payments linked to a consumer price index, payments linked to a benchmark interest rate (such as LIBOR) or payments that vary to reflect changes in market rental rates.

Variable payments that are independent of an index or a rate, particularly those tied to the future activity of a lessee or a leased asset, are excluded from the lease liability and right-of-use (RoU) asset measurement.