How to Assess Materiality and Recognition Thresholds
Implementing the new standard is complex and takes time. Under ASC 842, operating leases are now on the balance sheet,…
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…