Lease Agreement Intangible Asset

A lease agreement intangible asset is a type of asset that is created through a lease agreement between two parties. This asset is intangible, which means it cannot be seen or touched. Examples of lease agreement intangible assets include software licenses, patents, copyrights, and trademarks.

When a lease agreement is created, the lessee (the person leasing the asset) gains the right to use the asset for a certain period of time. This right is considered an intangible asset and can be recorded on a company`s balance sheet. The value of this asset is the present value of the lease payments discounted at the lessee`s incremental borrowing rate.

For example, suppose a company enters into a lease agreement for a software license that has a fair value of $10,000. The lease agreement is for three years, and the lessee will make payments of $4,000 per year. Assuming the lessee`s incremental borrowing rate is 8%, the present value of the lease payments would be $10,907. This amount would be recorded as a lease agreement intangible asset on the company`s balance sheet.

Lease agreement intangible assets are important because they can have a significant impact on a company`s financial statements. Under the new lease accounting standard (ASC 842), lessees are required to record most leases on their balance sheet as a right-of-use asset and a lease liability. This includes lease agreement intangible assets.

When lease agreement intangible assets are initially recorded, they are measured at fair value. After that, they are amortized over the life of the lease agreement. The amortization expense is recorded as an operating expense on the income statement.

In conclusion, lease agreement intangible assets are an important component of a company`s balance sheet. They can represent a significant portion of a company`s assets and can have a significant impact on the financial statements. It is important for companies to properly account for lease agreement intangible assets in order to accurately reflect their financial position.

Agreement South Africa

Agreement South Africa: A Comprehensive Guide to the Legal Document

An agreement is a legal document that outlines the terms and conditions of a transaction or a relationship between two or more parties. In South Africa, agreements have to comply with the country`s laws and regulations, while also being enforceable in court. This ensures that all parties involved are protected and have legal recourse should any conflicts arise.

Types of Agreements in South Africa

There are several types of agreements in South Africa, including:

1. Sale agreement: This agreement outlines the terms of sale of a property, including the price, payment terms, and conditions of the sale.

2. Employment agreement: This agreement outlines the terms and conditions of employment, including salaries, benefits, and responsibilities of the employee.

3. Lease agreement: This agreement outlines the terms and conditions of renting a property, including the rental amount, duration of the lease, and responsibilities of the landlord and tenant.

4. Partnership agreement: This agreement outlines the terms of a partnership, including the roles and responsibilities of each partner, the distribution of profits and losses, and the duration of the partnership.

5. Service level agreement: This agreement outlines the level of service to be provided by a service provider, including response times, service standards, and penalties for non-compliance.

What should an agreement include?

An agreement should include the following:

1. Identification and contact details of the parties involved.

2. The purpose of the agreement.

3. The terms and conditions of the agreement, including duration, payment terms, and penalties for non-compliance.

4. Provision for dispute resolution.

5. Signatures of all parties involved.

SEO Considerations

When writing an agreement, it`s important to consider SEO (Search Engine Optimization) to ensure that it is easily discoverable on search engines. Here are some tips for incorporating SEO into your agreement:

1. Use relevant and descriptive titles and headings.

2. Use keywords that are relevant to the content of the agreement.

3. Use simple and concise language.

4. Use bullet points and lists to break up long paragraphs.

5. Include links to relevant resources and pages.


Agreements are an essential part of business and personal relationships in South Africa. To ensure that an agreement is legal, enforceable, and easily discoverable on search engines, it`s important to follow the country`s laws and regulations and incorporate SEO into the document. By doing so, all parties involved will be protected and have a clear understanding of the terms and conditions of the agreement.