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 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 »
iLease Management LLC (“iLease”) has been providing insightful research and recommended approaches into the proposed lease accounting changes since 2011. We do provide a brief overview and update of the proposed lease accounting changes in this document, but you will find that this whitepaper is different than others that we have authored. In this whitepaper… Read More »
FASB has offered several reliefs to organizations transitioning, which also includes shift of transition dates from December 31st, 2019 to December 31st, 2021. In this article, we will take a closer look at those effective dates and the transition approaches companies have at their disposal.
TENTATIVE BOARD DECISIONSTentative Board decisions are provided for those interested in following the Board’s deliberations. All of the reported decisions are tentative and may be changed at future Board meetings. December 2, 2020 FASB Board MeetingPost-implementation Review: Accounting Standards Update No. 2016-02, Leases (Topic 842). The Board discussed feedback received to date during the post-implementation review (PIR) of… Read More »