The FASB ASC 842 Lease Accounting Standard for lease accounting is now in effect for both public and non-public companies. This standard will be required of many business entities throughout the United States. The accounting change makes lease management and accounting much more complex. The ASC 842 accounting model requires more sophisticated financial calculations and… Read More »
The ASC 842 Impact to the Hospitality Industry whitepaper dives into the details and offers an example of what one might consider a typical situation may the best way to demonstrate the effect on the financial statements of the provisions in ASC 842 versus current GAAP accounting requirements.
Are you a business owner or employee who manages commercial equipment leases? If so, then you know that when keeping track of important lease information, things can get out of hand quickly. This is especially true if you manage multiple leases or lease types. As a working professional, you don’t have time to double as… Read More »
The FASB Accounting Standards (ASU) for topic ASC 842, Lease Accounting, became effective at the end of 2021 for all reporting periods after December 15th 2021. This standard brings about significant changes across many different industries. With the new standard in effect, public and private companies must ensure they are following the new accounting guidelines. Apart from being compliant, companies… Read More »
The FASB ASC 842 Lease Accounting changes, which became effective at the end of 2021 for all reporting periods after December 15th 2021, haven’t just changed how leases are handled in books, but also the tax implications that may come along with it. Read more to understand the potential areas to focus in on..
iLeaseXpress has received Honorable Mention in the Lease Accounting Tools category in the 2022 Top Accounting Products of Accounting Today. Additional information can be found on the Accounting Today website. “We are very proud and honored to receive this award from Account Today”, stated John Meedzan, Managing Partner of iLease Management LLC. “We want to… Read More »
Understand ASC 842: The first step, which is the most challenging, is understanding the requirements of ASC 842. It is a radical departure from past practice. Clients must grasp changes in the definition of a lease, lease payments, initial direct costs, lease term, discount rates, and allocation of consideration to lease and non-lease components. Lease… Read More »
Lease accounting software is not a substitute for a good lease accountant. The person entering the data in a lease accounting software must understand the lease accounting requirements and interpret lease contracts correctly. Leases that require frequent reassessments of discount rates, lease terms, lease payments, and lease classification are not good candidates for such software.… Read More »
A company with more than ten active leases must consider a lease accounting solution. The new accounting standard requires more sophisticated financial calculations and detailed monitoring and tracking of leases. Companies will find it extremely challenging to use spreadsheets for lease accounting because of the following limitations of spreadsheets: Lack of ability to track changes: One cannot track changes in spreadsheets. Employees can deliberately or inadvertently overwrite spreadsheet data. Therefore, spreadsheets do not meet internal… Read More »
iLeaseXpress is a cloud-based lease accounting solution providing compliance to the ASC 842 lease accounting standard for private companies that have less than 15 leases. Powered by iLeasePro, the company’s flagship lease accounting solution, iLeaseXpress offers companies with smaller lease portfolios the ability to transition to and adopt the complex ASC 842 lease accounting standards for… Read More »