We are still under ASC 840 and need to finalize accounting treatment for a new 10 year lease. The peak liability is four years out so the liability is still increasing during the ST period over the next 12 months. I am unable to locate specific accounting guidance related to the ST/LT breakout when the peak balance is further than 12 months out but have seen the liability treated as 100% LT in this scenario. Is there specific guidance I can refer to that addresses this scenario?
