Lease Accounting Insights
Expert guidance on ASC 842, lease management, and industry best practices
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The Hidden Costs in Leases
Hidden lease costs often stem from provisions buried in contracts—such as CAM charges, gross-ups, admin fees, and uncapped escalations. If mismanaged, these costs can not only lead to overpayments but also appear as Critical Audit Matters in audits. This article explains the key terms, shares a tenant rep example, and shows how proactive audits and technology-driven lease management protect your bottom line.
Top Challenges in Lease Management — And How to Turn Them Into Your Biggest Wins
Explore the top challenges companies face in lease management, including ASC 842 compliance, data silos, and manual errors, and learn how to turn each into a measurable business win.
FASB's Public Markets Advisory Committee Meeting Recap
PMAC members agree that the leases standard (ASC 842) enhances transparency for investors and improves lease management, but note high initial implementation costs and ongoing challenges with compliance, especially around embedded leases and discount rate calculations.
Protect Lease Data: Cybersecurity in Lease Management
As lease management systems evolve, so do the cybersecurity risks tied to sensitive lease data. This article explores practical data protection strategies, compliance with regulations like GDPR and CCPA, and how to mitigate risks across digital lease platforms to protect your company’s financial and operational integrity…
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.
Maximizing ROI with Lease Data Importing
Manually entering lease data is time-consuming and error-prone. Automating with an import feature saves hours, improves accuracy, and reduces costs. Discover how to maximize efficiency and ROI today…
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…
Navigating ASC 842’s Impact on Loan Covenants
ASC 842 changes lease accounting, impacting loan covenants by increasing liabilities and altering financial ratios. Learn how to navigate these challenges effectively…
Navigating EBITDA-Based Covenants Under ASC 842
ASC 842 alters EBITDA calculations by reclassifying lease expenses, impacting loan covenants. Companies must adapt to lender adjustments and ensure compliance…
How ASC 842 Impacts Financial Ratios and Loan Covenants
The adoption of ASC 842 has reshaped financial reporting by requiring operating leases to be recognized on the balance sheet. This shift impacts key financial ratios such as debt-to-equity, EBITDA, and return on assets, potentially affecting loan covenant compliance. Companies must reassess their financial strategies to manage these changes effectively…
Essential Fleet Vehicle Lease Terms for Lease Abstraction
Understanding fleet vehicle lease terms is essential for effective lease abstraction. This guide breaks down key terms like base rent, escalation clauses, and tenant improvement allowances…
Essential Real Estate Lease Terms for Lease Abstraction
Understanding real estate lease terms is essential for effective lease abstraction. This guide breaks down key terms like base rent, escalation clauses, and tenant improvement allowances…
Key Equipment Lease Terms to Know
Understand critical equipment lease terms like base rent, fair market value leases, and escalation clauses to make informed leasing decisions…
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…
Equipment-as-a-Service (EaaS) and ASC 842 Explained
Equipment-as-a-Service (EaaS) shifts equipment acquisition from ownership to a subscription-based model, aligning costs with usage and offering flexibility. EaaS enhances operational efficiency and ensures access to the latest technology. Under ASC 842, these arrangements often involve lease classification, variable payments, and embedded leases, requiring careful management for accurate financial reporting. By adopting EaaS, businesses can adapt to changing demands while staying compliant with lease accounting standards…
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…
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