Lease Accounting
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Lease Accounting’s Digital Makeover: What’s New and Why It Matters
Today We Are Talking Tech in Lease Accounting! Welcome to the world where tech meets lease accounting! It’s a lot cooler than it sounds, trust me. You know how everything’s going digital these days? Well, lease accounting is hopping on that bandwagon too. We’re talking cloud computing, AI, blockchain, data analytics, and mobile integration -…
Year-End Close: Efficient Lease Accounting Practices
Creating an efficient and accurate year-end close process for lease accounting is essential for businesses to ensure compliance with financial reporting standards and maintain operational efficiency. Here’s a guide that outlines the steps and tasks involved in this process and also highlights how iLeasePro, a comprehensive lease management and accounting software, can assist in streamlining…
Mastering Tax Implications of ASC 842: Key Questions for CFOs
The ASC 842 lease accounting standard, which mandates significant changes in how companies recognize and report their lease obligations, has far-reaching implications beyond just the domain of accounting. Its ripple effects extend into the tax realm, where intricate nuances can translate to substantial fiscal implications. For CFOs, navigating this maze without expert guidance is not…
Mitigating Tax Risks with ASC 842: A CFO’s Guide
The ASC 842 lease accounting standard, introduced by the Financial Accounting Standards Board (FASB), brought forth a paradigm shift in the way companies recognize and report lease obligations. While its primary aim was to enhance transparency in financial reporting, its complexity and nuances have paved the way for potential misunderstandings and misapplications. As the Chief…
Sublease Strategy Under ASC 842: A CFO's Tax Optimization Guide
In the multifaceted realm of lease accounting, subleases represent a unique area of focus, especially with the enforcement of the ASC 842 standard. For a Chief Financial Officer (CFO), the ability to adeptly navigate the intricacies of subleasing can serve as a potent tool in the quest to optimize tax exposure. This article delves into…
Optimizing Tax Exposure: A CFO's Guide to ASC 842 Modifications
In the dynamic environment of modern business, lease agreements aren’t always static. They can be frequently modified to reflect changing business conditions or renegotiated terms between lessees and lessors. With the introduction of ASC 842, the manner in which these lease modifications are recognized and measured has profound implications for a company’s financial statements and,…
Mastering IBR Under ASC 842: Minimize Tax Exposure
The introduction of the ASC 842 lease accounting standard has undeniably ushered in a new era of transparency and rigor in how companies account for their lease obligations. Among the various nuances of this standard, one term that has gained notable prominence is the Incremental Borrowing Rate (IBR). But how does the IBR intertwine with…
Strategic Lease Re-evaluation: Optimizing Tax Liabilities under ASC 842
In the intricate financial landscape navigated by Chief Financial Officers (CFOs), every decision has a ripple effect on a company’s bottom line. One of the pivotal areas under the spotlight, especially with the advent of the ASC 842 lease accounting standard, is the structuring of lease terms. Let’s dive deeper into the strategic significance of…
ASC 842 Lease Accounting: 8 Tax Strategies for Private Companies
Implementing the ASC 842 lease accounting standard can be complex, and it’s essential for private companies to understand its implications and potential strategies to minimize tax exposure. We have outlined key strategic initiatives that should be considered to potentially reduce your corporate tax exposure. (Click on the title to dig in deeper on the topic)…
ASC 842: Tax Implications & Mitigation Strategies
ASC 842 is the lease accounting standard issued by the Financial Accounting Standards Board (FASB) that requires lessees to recognize assets and liabilities for most leases on their balance sheet. While ASC 842 primarily impacts financial reporting, it can also have tax implications. Let’s walk through some potential tax implications and how they might be…
Understanding Tax Implications of ASC 842 Lease Accounting Changes
The introduction of ASC 842 brought about significant changes to how companies account for leases in their financial statements. While the primary focus of ASC 842 is on accounting and financial reporting, it can also have indirect effects on taxation. Below are some of the specific ways in which the ASC 842 lease accounting changes…
Successfully Completing an ASC 842 Lease Accounting Audit
In the world of finance and accounting, keeping up with regulatory requirements can often be a daunting task. One of the more recent standards to be introduced is the ASC 842, which pertains specifically to lease accounting. Successfully completing an ASC 842 lease accounting audit requires diligence, understanding, and a well-defined approach. Let’s dive into…
NPV vs. XNVP: Which to Use for ASC 842 Lease Accounting?
Before we get into Net Present Value (NPV) and Extended Net Present Value (XNPV) in lease accounting and lease analysis, let’s break down the concept of present value (PV) and its application in lease accounting and analysis. The present value plays a foundational role in generating a lease amortization schedule. An amortization schedule breaks down…
ASC 842: Rent Expense on 365 vs. 360-Day Basis
The ASC 842 Lease Accounting Standard, implemented by the Financial Accounting Standards Board (FASB), brought about significant changes to how companies recognize, measure, and present lease transactions in their financial statements. One of the critical aspects of lease accounting is determining the accurate expense associated with a lease, especially for operating leases. iLeasePro calculates on…
Building a Continuous Improvement Culture in Accounting
In the ever-evolving world of finance and accounting, the pursuit of excellence and efficiency is a constant endeavor. Building a culture of continuous improvement within your accounting department is the key to staying ahead in today’s dynamic business landscape. In this blog post, we will explore the importance of cultivating a culture of continuous improvement,…
Trends Shaping the Future of Lease Accounting & Management
The world of lease accounting and management is ever-evolving, with innovative approaches surfacing to match the shifting economic landscape. Understanding these trends is essential for entities dealing with leases, especially with the implementation of standards like ASC 842, GASB 87, GASB 96 and IFRS 16 that have fundamentally changed lease accounting. One of the most…
The Top 10 Common ASC 842 Lease Accounting Mistakes to Avoid
Here are some common mistakes lessees make when dealing with lease accounting according to the ASC 842 standards and how iLeasePro can easily help you avoid making them. 1. Lease Misclassification: Under ASC 842, leases should be classified as either operating or finance leases. Misclassifying a lease can significantly impact a company’s financial statements. 2….
ASC 842 Lease Accounting: A Scenario Explained
The ASC 842 Lease Accounting Standard was introduced by the Financial Accounting Standards Board (FASB) to establish new guidelines for lease accounting. Understanding how to build an ASC 842 Lease Accounting amortization schedule and record ASC 842 Lease Accounting journal entries is crucial for accurately reporting lease transactions. In this blog, we will walk through…
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