Archive: lease accounting

What Discount Rate to Use Under ASC 842 to Calculate Your Lease Liability

One of the key changes under the new leasing standard, Accounting Standards Codification Topic 842 (Topic or ASC 842), is that a lessee must calculate a lease liability at each balance sheet date for both its operating and finance (formerly ‘capital’) leases. The only exception is for certain leases with an original term at lease […]
December 29, 2020

FASB Proposal Made to Defer Effective Dates for the New Lease Standard

It’s been pushed back before, and now, in the midst of the COVID-19 epidemic, it’s happening again. The Financial Accounting Standards Board (FASB) has proposed deferring the effective dates for the Lease standard (Topic 842) for yet another year. For private companies and private not-for-profits, the standard will be effective for fiscal years beginning after […]
April 9, 2020

Lease Accounting eBook

Set to take effect at the end of 2020, the new lease accounting standard impacts organizations across all industries that enter lease agreements and sign contracts containing leases to support business operations. ASC 842 contains a number of complexities and major changes that affect your business—and you need to start planning now to ensure proper […]
November 25, 2019

Lease Accounting in 70 Seconds

The new lease accounting standard, ASC 842, is one of the most significant accounting overhauls in recent history, impacting organizations across all industries. It may come as a surprise, but any contract has the potential to be or contain a lease under the new guidance, including real estate, shipping, or cloud computing contracts. We’re here […]
November 13, 2019

FASB Votes to Delay New Lease Standard Effective Date

On July 17, 2019 the Financial Accounting Standards Board (FASB) voted unanimously to draft an Accounting Standards Update (ASU) to defer the effective date of the new Accounting Standards Codification 842, Leases. Once finalized, the delay provides privately-held companies with an extra year to adopt the new lease standard. Previously, the standard was scheduled to […]
August 21, 2019

More on Leases

As discussed in a previous blog post on February 25, 2016, the FASB issued a new standard on Leases (ASC 842) which absent early adoption (which is permitted) will take effect for nonpublic companies in 2020. This update comes after a study and deliberation period of almost ten years. There was an original goal to […]
March 29, 2016
  • By:
  • Aronson

Lease Accounting is Here

The long-awaited new standard on leases has finally been issued. On February 25, 2016, ASU 2016-02 Leases (Topic 842) was issued. Lessees will see the most significant changes as they will need to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than those  who meet the definition of […]
March 14, 2016
  • By:
  • Aronson

Lease Accounting Exposure Draft Faces Criticism

The Financial Accounting Standards Board and International Accounting Standards Board issued a revised Exposure Draft on May 16, 2013, recommending significant changes to lease accounting. The stated goal of the proposal is to better meet the needs of financial statement users by improving the transparency of lease accounting and increasing comparability between organizations. The Exposure […]
October 10, 2013