Our free ASC 842 lease accounting checklist is designed to help your company apply the accounting standard to new and existing leases.
ASC 842 Review Template
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What's the impact? ASC 842 changes the manner in which operating leases are accounted for by requiring the capitalization of operating leases, which under previous GAAP were not reflected on a Company’s Balance Sheet. Similar to accounting for finance leases, ASC 842 would require, at a minimum, the recognition of a lease asset (i.e., the “Right-of-Use” or “RoU” Asset) and lease liability, representing the minimum future payments due under a long-term lease.
Under ASC 842, for leases with terms of 12 months or less, lessees can elect to not recognize lease assets and liabilities. In making this election, lessees should recognize lease expenses on a straight-line basis, generally, over the term of the lease.
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Even after the mandatory implementation deadlines of ASC 842, we've found that many companies are interested in improving their approach to lead accounting. We've created this new process-centered resource to support your company and its navigation of the standards.
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