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… Read More »
The ASC 842 Lease Accounting Standard, also known as Accounting Standards Update (ASU) No. 2016-02, is a set of guidelines established by the Financial Accounting Standards Board (FASB) for accounting for leases. The standard went into effect for public companies in 2019, and for private companies in 2020. The main goal of ASC 842 is… Read More »
Beverly, MA – iLease Management LLC, developer of the iLeasePro ASC 842 Lease Accounting solution, announced a strategic partnership with Zeal CRE to provide a one stop ASC 842 lease accounting and lease administrative solution for mid-market companies. “iLeasePro offers an uncomplicated approach to lease accounting for lessees and tenants of real estate and equipment… Read More »
Acumatica customers will now have access to an intuitive, cost-effective lease accounting solution that will simply the transition to the FASB ASC 842 standard BEVERLY, Mass.–(BUSINESS WIRE)–iLease Management LLC (“iLease”), developer of the iLeasePro, the cloud-based ASC 842 Lease Accounting solution announced today it has joined the Acumatica Development Network. “With this exciting partnership, Acumatica… Read More »
JMT Consulting partners with iLeasePro to provide a cloud-based ASC 842 lease accounting and management technology solution to nonprofits. Nashville, TN: JMT Consulting today announced a new partnership with iLeasePro. This new partnership will give JMT’s clients access to a cloud-based lease accounting and management technology solution. John Meedzan, Managing Partner, said, “Prompted by the… 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 »
We’ve been addressing the changes FASB proposed and implemented in ASC 842 over the past couple of articles, including the changes in rate implicit in the lease, determination of IBR and leases embedded in contracts. After the break, FASB members, preparers and others reassembled to discuss another change; lease modifications. Here, the main issue was with regards to the complexity and costs involved with applying lease modifications in the books. This… Read More »