Disclosure
Disclosure is the release of information that could influence financial decisions. Organizations disclose relevant data to ensure transparency and fair reporting.
Lease accounting standards such as IFRS 16, ASC 842, and GASB 87 require disclosures in addition to balance sheet recognition. These disclosures help stakeholders understand:
• Lease-related liabilities.
• The timing of financial commitments.
• Uncertainties related to lease cash flows.
Typical lease disclosures include:
• The rationale for including or excluding renewal options in lease capitalization.
• Qualitative and quantitative details about reported lease amounts.
• Information about obligations to remove tenant improvements, including whether estimates or contractual terms determine the costs.