The Impact of ASC 842 on Debt Covenants and Bank Capital Requirements

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

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.

How to Identify Embedded Leases

How to Identify Embedded Leases

In accordance with ASC 842, an entity is required at contract inception to identify whether a contract contains a lease….

Disclosure Requirements Explained Under ASC 842

Disclosure Requirements Explained Under ASC 842

Under ASC 842, lease disclosure requirements were created with the intent to provide financial statement readers with more transparent insights…

4 Steps to Identify a Lease Under ASC 842

4 Steps to Identify a Lease Under ASC 842

A: An asset is identified in a contract either: Explicitly by serial number, VIN, GPS coordinates, etc    or Implicitly based on whether a particular asset…

Implementation of Practical Expedients Under ASC 842

Implementation of Practical Expedients Under ASC 842

Introduction to ASC 842 Implementation Accounting for leases under ASC 842 is a new area that many finance teams are…

Breaking a Commercial Lease? Here Are Your Options.

Breaking a Commercial Lease? Here Are Your Options.

You have the right space, but do you have the right lease? The standard commercial lease terms aren’t always as standard…