Apply the Correct ASC 842 Lease Classification

The ASC 842, or Accounting Standards Codification Topic 842, is the accounting standard for lease accounting in the United States. It was issued by the Financial Accounting Standards Board (FASB) to improve transparency and comparability of financial statements by recognizing lease assets and liabilities on the balance sheet. Under ASC 842 lease classification, leases are... Continue Reading →

Implementing Top 10 Lease Accounting Internal Controls to Ensure Success

Implementing new processes and internal controls is crucial for ensuring accurate and timely lease accounting under the new standards. Here are some key processes and controls to consider: Lease identification and inventory: Establish a process to identify and track all lease agreements, including embedded leases within service contracts or other arrangements. Maintain a comprehensive lease... Continue Reading →

Unlocking the Benefits of Cloud Lease Accounting & Lease Management Solutions for Property Managers

There are several benefits of a cloud lease accounting and lease management solution for property managers, including: Improved accuracy: Cloud lease accounting and lease management solutions automate the lease accounting process, reducing the potential for human error. This results in more accurate financial reporting and better decision-making. Centralized data: Cloud solutions provide a centralized location... Continue Reading →

Impact of Non-Compliance with ASC 842 Lease Accounting

Non-compliance with the ASC 842 lease accounting standard can have several negative impacts on a company, including the following: Financial statement misrepresentation: Failure to comply with ASC 842 may result in inaccurate representation of a company's financial position. The balance sheet might not properly reflect the company's lease liabilities and right-of-use assets, leading to misleading... Continue Reading →

When a ASC 842 Lease Modification is Required?

Lease modifications can have a significant impact on lease terms, lease payments, and lease liability. With the implementation of the ASC 842 accounting standard, it is important for companies to understand how lease modifications are accounted for to ensure compliance with the new guidelines. In this blog, we will discuss how lease modifications are accounted... Continue Reading →

Accounting for Acquisitions under the ASC 842

Accounting for an acquisition under the ASC 842 Lease Accounting Standard involves several steps, including identifying and evaluating the leases associated with the acquisition, and determining the appropriate accounting treatment for those leases. First, the acquirer must identify all leases that are associated with the acquired entity, including both operating and finance leases. This includes... Continue Reading →

How Will the FASB ASC 842 Standard Improve Lease Accounting?

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... Continue Reading →

Up ↑