What Is a Non-Cancellable Lease?

Answer:

A lease that is cancellable only:

• Upon the occurrence of some remote contingency;
• With the permission of the lessor;
• If the lessee enters into a new lease for the same or an equivalent asset with the same lessor; or
• Upon payment by the lessee of such an additional amount that, at inception of the lease, continuation of the lease is reasonably certain.