Introduction The Financial Accounting Standards Board’s (FASB) recent lease accounting standards (ASC 842) are impacting toll agreements for stand-alone battery energy storage systems (BESS). These standards require offtakers (lessees) to recognize assets and liabilities arising from an operating lease with a term greater than 12 months, which affects the lessees’ initial measurement of the lease liability. Such lease liability is the present value of the unpaid lease payments, discounted using the rate implicit in the lease (if readily determinable), or otherwise using the lessee’s incremental borrowing rate (FASB 842-20-30-1 – 30-3).