Tag Archives: #leaseaccounting

Risks of Using Spreadsheets to Comply with the ASC 842 Lease Accounting Standard

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 »

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… 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 »