How to Account for Lease Modifications Under ASC 842
Leases are contracts that convey rights and obligations to use an identified asset for a period of time in exchange…
How to Transition to the ASC 842 Lease Accounting Standards
An estimated $3 Trillion dollars in lease liabilities is going onto the balance sheet with the ASC 842 standards. The…
How to Perform a Lease Classification Test
After collecting and organizing your organization’s contracts, you’ll want to determine if each individual contract is a finance or an…
How to Determine the Discount Rate Under ASC 842
One of the key differentiators when Comparing ASC 840 to ASC 842 is that now all leases, both finance (previously…
The Impact of ASC 842 on Debt Covenants and Bank Capital Requirements
The new lease accounting standards are here. And these guidelines are expanding your balance sheet liabilities. It is estimated $3…
Comparing ASC 840 to ASC 842: Going From Old to New Lease Accounting Standards
In 2005, the Securities and Exchange Commission recommended FASB address a lease accounting project. Under ASC 840, corporations were required to report on off-balance-sheet arrangements. Fast forward to today, and ASC 842 is replacing ASC 840 and creating new guidelines that say all lease liabilities should be accounted for on the balance sheet.