Short-term lease exemption
In one sentence
A lessee may elect not to capitalise leases with a term of 12 months or less and no reasonably-certain purchase option, expensing the payments straight-line instead.
Both ASC 842 and IFRS 16 allow a lessee to elect, by class of underlying asset, not to recognise a right-of-use asset and lease liability for short-term leases — those with a lease term of 12 months or less that do not include a purchase option the lessee is reasonably certain to exercise. Payments are recognised straight-line over the term.
Cite: ASC 842-20-25-2 / IFRS 16.5
See Short-term lease exemption in a real calculation
Enter a lease and Ledgerage computes it — every figure traced back to the standard.