Advanced
Lease vs service assessment with key term extraction
Extracts key contract terms and evaluates whether an arrangement contains a lease under ASC 842/IFRS 16. Produces a concise conclusion and data needed for accounting setup.
Determine whether the arrangement contains a lease under {standard} (ASC 842/IFRS 16).
Inputs:
- Contract text or summary: {contract_text}
- Identified asset? {identified_asset}
- Substitution rights: {substitution_rights}
- Right to control use (how/what/when): {control_factors}
- Term, renewal, termination options: {term_options}
- Payments and indices: {payment_terms}
Output:
1) Extracted key terms (bullet list).
2) Lease identification conclusion and rationale.
3) Accounting data requirements (commencement, term, payments, discount rate, incentives, initial direct costs).
4) Next steps: classification decision points and system setup checklist.
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