This week we continue our Leasing toolkit series, breaking down the complexities of sale-leaseback transactions and build-to-suit lease arrangements.
In our Toolkit podcast series, we take a deep dive into one accounting topic each month that goes beyond the basics and into areas that require judgment. This month, we are covering leasing–a multifaceted area that generates numerous questions.
In this episode, Heather Horn was joined by Chad Soares and Marc Jerusalem from our National Office to breakdown the complexities of sale-leaseback transactions and build-to-suit lease arrangements.
In this episode, you will hear:
  • 1:24 - An overview of sale-leaseback transactions, including how the accounting changed in the updated leases standard
  • 7:59 - A deeper dive into meeting the risks and rewards of ownership criteria and the treatment of purchase and put options
  • 18:50 - Accounting for sale-leasebacks and questions about fair value
  • 24:50 - What to do when transactions don’t qualify for sale-leaseback accounting
  • 31:10 - An overview of build-to-suit arrangements and changes from the more form driven prior guidance
  • 39:42 - Things to look out for in sale-leaseback and build-to-suit transactions
  • 42:18 - Final advice for dealing with these complex arrangements

Want to learn more? Listen to our previous podcasts in our Leasing toolkit series on private company adoption and how to get lease measurements and modifications right.
About our guests
Chad Soares is a partner in PwC's National Office focused on leasing and financing arrangements. He was a primary author of PwC’s Leases guide and continues to contribute to a variety of thought leadership related to leasing and financial instruments.
Marc Jerusalem is a Director in PwC’s National Office specializing in leasing. Marc consults with clients on complex lease accounting issues and is a frequent contributor to many related PwC National Office publications.
About our host
Heather Horn is PwC’s National Office thought leader, responsible for developing our communications strategy and conveying firm positions on accounting and financial reporting matters. She is the engaging host of PwC’s accounting and reporting weekly podcast and quarterly webcast series. With over 30 years of experience, Heather’s accounting and auditing expertise includes financial instruments and rate-regulated accounting.
Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to

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