Tag Archives: Lease Accounting

Tax Implications of ASC 842: Lease Accounting Standards

  The ASC 842 changes haven’t just changed how leases are handled in books, but also the tax implications that come along with it.   There are seven key areas where lease accounting tax implications will take effect. Here, we’ll discuss those seven areas in detail to give you an overview of what’s going on.   Tax Implications of ASC 842 Changes … Read More »

ASC 842 Changes – Identification of Embedded Leases

We previously discussed how FASB had discussed changes in ASC 842: Lease Accounting in Rate Implicit in the lease as well as the determination of IBR. At the same roundtable conference, the board also discussed the concern presented by some preparers about the identification of leases embedded within a contract.   The main issue was that entities spent significant amounts of time trying to identify and… Read More »

Changes in ASC 842 Topic Lessee Application of Rate Implicit in the Lease – Is the Use of IBR Enough?

In a previous post, we discussed how FASB is finalizing a change in ASC 842: Lease Accounting. As it stands, the change is set to impact every business that adopts GAAP to settle their books. FASB had been releasing updates every now and then to ensure that the new changes are well understood and implemented by the effective date.  Although… Read More »

ASC 842 Changes: Would a Specific Incremental Borrowing Rate Be Better?

The problem of determining the rate implicit in a lease also presented a concern that most preparers used the incremental borrowing rate (IBR) as the discount rate. However, that wasn’t the only concern that came to light during FASB’s roundtable in September 2020.   Apart from the rate implicit, members also discussed the IBR; i.e., how those that have adopted ASC 842 determine the IBR. It… Read More »

Sage Intacct and iLeasePro Announce Major Integration Enhancement

iLease Management LLC (“iLease”), developer of iLeasePro, an enterprise cloud-based Lease Management and Accounting solution, has announced a major step forward in its strategic partnership and integration with Sage Intacct, a leader in cloud-based financial management and accounting software. iLease has released the capability to take advantage of Sage Intacct’s dimension feature to seamlessly track… Read More »

Proposed Lease Accounting Standard Changes – Key Business Considerations for Lessees

I have heard it said many times that accounting results should not drive the basic economic decisions related to business. And I generally agree with that point of view. But it is difficult to ignore completely the accounting results and business analytical metrics that result from changes in accounting treatment and certainly the changes in… Read More »

Lease Accounting Update January 2013: Lease Components in a Single Lease Contract

The FASB and the IASB (“The Boards”) met on January 30, 2013 to continue further deliberations on the Lease Accounting Project. The discussions were narrowly focused on the instances where multiple lease components are contained in a single lease contract. As examples, multiple pieces of equipment could be leased under a single lease contract, a single… Read More »

Lease Management and Accounting Tool

We have some exciting news to share with all of our readers.  iLease Management LLC will soon launch a lease management and accounting tool that will meet the critical needs of lessees as they react to the new lease accounting standards and continuously try and gain efficiency in their day to day operations.  As we… Read More »

Lease Accounting Update June 2011

The Boards continued their deliberations this week without any major changes to their previous tentative conclusions regarding lessee accounting. This reaffirms the decisions to have all leases (except those defined as short term) recognized on the balance sheet similar to a finance lease approach and to have an accelerated method of expense recognition using the… Read More »