Lease Accounting
ASC 842 Lease Accounting Guide With Real Estate & Equipment Examples
A practical ASC 842 walkthrough with operating and finance lease examples (office space and equipment), sample journal entries, measurement inputs, disclosure checklist, and internal links for deeper dives on embedded leases, discount rates, and modifications.
ASC 842 Sale-Leasebacks: What Companies Need to Know
Under ASC 842, sale-leasebacks move owned property off the books and bring right-of-use assets and lease liabilities onto the balance sheet. This article explains finance vs. operating lease classification, provides journal entry examples, and highlights risks including leverage impact, variable payments, and covenant compliance.
How to Calculate the Incremental Borrowing Rate
A step-by-step guide for private companies to determine and update the IBR under ASC 842, including asset class strategies and pros and cons of IBR vs. risk-free rate.
ASC 842 Made Simple: Complex Lease Accounting Explained
Lease accounting under ASC 842 doesn’t have to be confusing. Learn how to understand complex transactions—like lease liabilities, right-of-use assets, and lease modifications—using relatable, real-world examples.
How ASC 842 Changes the Top 10 Essential Accounting Reports
ASC 842 changes how leases appear in key accounting reports, from the balance sheet to the cash flow statement. Learn how these changes impact your financial reporting and compliance…
Avoiding Top 6 Common Pitfalls in ASC 842 Compliance
ASC 842 compliance presents challenges such as lease misclassification, poor data management, and incorrect discount rates. This guide covers the top 6 key pitfalls, solutions, and resources to help businesses navigate lease accounting effectively and stay compliant…
CPA's Safeguard ASC 842 Compliance and Avoid Audit Failures
Audits under ASC 842 can be challenging, but with the right strategies, you can avoid errors and ensure compliance. Discover how centralized lease data, automation, and robust processes help safeguard your audit readiness and protect your clients from non-compliance risks…
Calculate IBR for ASC 842 Compliance
The Incremental Borrowing Rate (IBR) is crucial for ASC 842 compliance, determining the present value of lease liabilities and right-of-use assets. This guide provides step-by-step instructions to calculate the IBR, including assessing creditworthiness, identifying market interest rates, and adjusting for lease-specific factors. Avoid common pitfalls like relying solely on risk-free rates and ensure accurate documentation. Tools like iLeasePro can simplify the process by automating calculations and ensuring compliance…
What is Lease Liability under the ASC 842?
This post explains the concept of lease liability under ASC 842, a critical component of modern lease accounting. Discover how to calculate lease liability, understand its implications, and review example amortization schedules for operating and finance leases to ensure compliance with the standard…
What Is a Right-of-Use Asset? ASC 842 Calculation Guide
Under ASC 842, a Right-of-Use (ROU) Asset reflects the lessee’s right to use a leased asset during the lease term. It is calculated by summing the initial lease liability, prepaid lease payments, and initial direct costs, then subtracting lease incentives. This blog explains the calculation process in detail, complete with an example, and covers the importance of ROU assets in financial reporting. Stay ASC 842 compliant with this simple guide…
The Ultimate Guide to ASC 842 Lease Accounting
Explore the ultimate ASC 842 Lease Accounting guide! Gain comprehensive insights, practical tips, and expert advice to master compliance and streamline lease management. Start simplifying ASC 842 today!…
Top 10 Year-End Lease Accounting Challenges & ASC 842 Solutions
As year-end approaches, lease accounting teams face mounting pressure to prepare accurate financial statements under ASC 842. This blog explores the top 10 challenges controllers and CFOs encounter, from data accuracy and lease modifications to audit-readiness and disclosure requirements…
ASC 842: Impact on Financial Ratios and Leasing Strategies
Explore the impact of ASC 842 on essential financial ratios like debt-to-equity, current ratio, and ROA, which stakeholders use to assess financial health. Understand leasing strategies that can optimize these ratios and present a stronger financial position. Learn how iLeasePro supports compliance and aids in effective lease management…
Quarterly Ratio Analysis: Adjustments Under ASC 842
Quarterly Ratio Impact Analysis (QRIA) offers insights into how ASC 842 affects financial ratios like debt-to-equity and ROA, allowing organizations to identify trends and make strategic adjustments. Learn how QRIA supports proactive financial planning, effective stakeholder communication, and improved leasing decisions, with iLeasePro simplifying compliance and enhancing ratio management…
Lease Payment Automation for ASC 842 Compliance
Accurate recognition of lease payments, especially accruals, is crucial for ASC 842 compliance. Automated payment scheduling eliminates manual adjustments, ensuring entries align with financial statements for year-end accuracy. Discover how automation supports precise reporting, with iLeasePro simplifying payment scheduling and enhancing lease accounting compliance…
Year-End Plan: Overcoming ASC 842 Lease Accounting Challenges
As the fiscal year draws to a close, a structured year-end communication plan becomes essential to address lease accounting challenges under ASC 842. This post outlines a comprehensive approach that includes cross-departmental meetings designed to facilitate timely compliance. By gathering input from accounting, finance, legal, and operations teams, your organization can proactively identify potential issues, implement corrective measures, and ensure accurate reporting…
Streamlining Lease Accounting: API Integration with ERP
API integration between lease accounting software and ERP systems ensures data accuracy, compliance, and operational efficiency for organizations with large lease portfolios. By enabling real-time data flow, it reduces manual errors, streamlines year-end audits, and enhances financial reporting. iLeasePro’s Sage Intacct and QuickBooks Online integrations support these essential functions…
Navigating Tax Implications of ASC 842 in Lease Accounting
ASC 842 has transformed lease accounting by requiring both operating and finance leases to be recorded on the balance sheet, impacting taxable income, deferred tax assets and liabilities, and lease classification. Companies may face higher tax liabilities, new compliance needs, and opportunities to optimize tax strategies. Understanding these changes helps businesses manage tax impacts, financing options, and strategic decisions effectively in a post-ASC 842 landscape.
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