The Impact of ASC 842 on Debt Covenants and Bank Capital Requirements
The new lease accounting standards are here. And these guidelines are expanding your balance sheet liabilities. It is estimated $3…
Comparing ASC 840 to ASC 842: Going From Old to New Lease Accounting Standards
In 2005, the Securities and Exchange Commission recommended FASB address a lease accounting project. Under ASC 840, corporations were required to report on off-balance-sheet arrangements. Fast forward to today, and ASC 842 is replacing ASC 840 and creating new guidelines that say all lease liabilities should be accounted for on the balance sheet.
How to Identify Embedded Leases
With the new lease accounting standard ASC 842 comes the requirement for entities to identify whether a contract contains a…
Disclosure Requirements Explained Under ASC 842
Under ASC 842, lease disclosure requirements were created with the intent to provide financial statement readers with more transparent insights…
4 Steps to Identify a Lease Under ASC 842
A: An asset is identified in a contract either: Explicitly by serial number, VIN, GPS coordinates, etc or Implicitly based on whether a particular asset…
Implementation of Practical Expedients Under ASC 842
Accounting for leases under ASC 842, the new standard as laid out by the Financial Accounting Standards Board (FASB), has…