[Proship] New Lease Accounting Standard Seminar: How to Set 'Shorter' Lease Terms — Practical Explanation of 'Reasonable Certainty' for Audit Readiness

Proship Inc. (Headquarters: Chiyoda-ku, Tokyo; President: Motofumi Suzuki) is holding a series of 14 free online lectures aimed at reducing the practical burden of applying the new lease accounting standards starting in April 2027.

In this 4th session, the seminar will focus on 'Lease Term Setting,' a critical practical issue. The theme is how to document 'reasonable certainty' and set lease terms as 'short' as possible while ensuring audit compliance.

### Background and Importance With the mandatory application of the new lease accounting standards from fiscal 2027, 'setting the lease term' is one of the most time-consuming topics for corporate practice. Since the determination of the lease term directly affects the calculation of lease liabilities and has a significant impact on financial statements, it is a crucial judgment matter. While many companies aim to process 'contract period = lease period,' they must demonstrate that the exercise (or non-exercise) of extension or termination options is 'reasonably certain.' This requires objective evidence and documentation for audits rather than relying on subjective judgment.

### Seminar Highlights - Basic concepts for judging 'reasonable certainty.' - Specific ways to interpret 'economic incentives,' the core of the judgment. - Practical judgment points regarding extension and termination options. - Concepts and sample phrases for 'lease term documentation' for audits. - Practical know-how to set lease terms within an appropriate and realistic range.

### Event Overview - Date & Time: Thursday, June 11, 2026, 13:30–14:30 - Format: Online (Live streaming) - Speakers: Seiho Nakata (CPA, Representative of Knowledge Network), Shunsuke Tatsumi (Proship Inc.) - Fee: Free (Pre-registration required)

### Support for Smooth Transition The new lease accounting standards are equivalent to IFRS 16, which began in 2019. Proship has a track record of over 100 IFRS 16 projects. In addition to system solutions, we provide comprehensive services including impact estimation, policy organization support, and consulting by experts to reduce the operational load for our clients.