Lease commencement date

The lease commencement date is the date when the lessor makes the underlying asset available for the lessee's use. It starts recognition and classification for that lease component. Contract signing, first payment, move-in, and business opening can occur on different dates.

Find the availability date

Use evidence that the lessee can begin exercising its right of use. Evidence can include access notices, delivery records, keys, system permissions, or a certificate that the space is ready. Lessee work after access, such as installing shelves or preparing a store, does not normally delay commencement when the asset was already available. A master agreement can produce several commencement dates as individual assets become available.

For example, a warehouse lease is signed November 10. The lessor gives the lessee control of the ready space on January 1. The lessee finishes its own shelving on February 15 and opens on March 1. January 1 is the supported commencement date. A rent-free period beginning then remains part of the lease term.

Commencement differs from contract inception and from the payment date. Those dates still belong in the evidence map. Read the implementation guidance in ASC 842-10-55-19 through 55-20 and the multiple-commencement guidance in ASC 842-10-55-22.