Misconception · MIS:signature-date-is-always-commencement

Mistaken idea “Signature date is always commencement”

Mistaken reasoning: This mistake recognizes the lease when signed even though the asset is not yet available for use.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

Inception establishes terms. Commencement is when the lessor makes the asset available for the lessee's use.

Where to watch

When this mistake may appear

  • The agreement is signed before access or buildout completes.
Check your work

Your work may contain this mistake if:

  • Start recognition and discount-rate measurement on signature date without availability evidence.