A flexible membership contract to the space offers users space for monthly terms of up to five to ten years. However, the flexible terms of a Flexible Space membership contract, combined with the principles-based definition of a lease, have created a certain accounting mystery: are these agreements „leases” within the meaning of the new accounting standards, and if so, why do we care? 42. Jurisdiction. Except that either party may seek equitable or similar relief from a court of competent jurisdiction, any dispute, controversy or claim arising out of or related to these Terms or under the law, or the breach, termination or invalidity of these Terms, which cannot be resolved amicably by agreement of the parties to these Terms, Final Resolution: Please read these Terms carefully as they affect your legal rights. These Terms include, but are not limited to, your consent that, with the exception of certain types of disputes described in „Governing Law”; In the „Arbitration and Class Action Waiver” section below, you agree that any dispute between you and us will be resolved by binding individual arbitration and you waive your right to participate in a class action or class arbitration. By using the Services, you agree to comply with and be bound by these Terms. This provision is important because if the agreement is not technically considered a lease, it does not fall within the scope of the new rental accounting standards and does not need to be included in a company`s balance sheet. Depending on the size of the area in question, the financial impact of this provision can be an important factor in a company`s decision-making process. Determining that a contract is a lease does not automatically mean that it must be included in the company`s balance sheet.
Indeed, both the FASB and IASB standards allow for a „short-term” lease exception. According to the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), a lease is a contract that „confers the right to use an identified asset for consideration for a specified period of time.” 26. Account Termination. Please note that if your individual account was created by a company, (a) an authorized representative of that company may terminate your individual account at any time by contacting us, and (b) we may terminate your account even if the company`s account remains active and even if you continue to be employed or engaged with that company. The cancellation will take effect immediately upon receipt of the cancellation notice by us. We do not offer any refunds in the event of termination or termination of your account in relation to amounts already paid. You remain responsible for any overdue amounts and we may exercise our rights to collect payments due despite the termination or expiration of your We membership and/or hot desk. Sections 10 (to the extent that payment amounts are unpaid), 11-13, 19, 20, 22-25, 28-39, 31-48 shall survive the termination or expiration of these Terms.
But even if an agreement is designated as a lease, there are more nuances to remember. . . .