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A Guide to the ASC 842 for Transportation Companies

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  • iLeasePro Lease Portfolio Management

    The ASC 842 lease accounting standard requires that all transportation-related leases—whether for vehicles, equipment, or facilities—be recorded on the company’s balance sheet. This major shift aims to increase transparency and provide a more accurate picture of a company’s lease obligations.

    Key Impacts
    Balance Sheet Recognition: Records all operating leases as assets and liabilities, affecting your financial ratios and indebtedness.
    Transparency and Disclosure: Improves financial disclosure, giving stakeholders a clearer understanding of your leasing obligations.

    Follow these steps to ensure compliance to the ASC 842 Lease Accounting Standard;

  • iLeasePro Lease Management

    1. Comprehensive Lease Identification

    Abstract and document all existing leases, including informal agreements, across all company divisions.

    Support from Lease Management Features: A robust lease management system like iLeasePro centralizes lease data, ensuring no lease is overlooked and compliance is seamless.

  • iLeasePro Rent Escalations

    2. Accurate Lease Classification

    Analyze each lease to determine if it should be classified as operating or finance under ASC 842.

    Support from Lease Classification Features: Advanced lease classification tools, like the iLeasePro Classification Wizard, assess terms and payment schedules to automate classification, reducing errors and manual work.

  • iLeasePro Cloud SaaS Solution

    3. Precise Measurement of Lease Transactions

    Calculate the present value of future lease payments to determine your right-to-use asset and liability.

    Support from Lease Management Features: Automate calculations using the correct discount rate, and maintain accurate, real-time records of these values. iLeasePro automatically creates the amortization scheduled and journal entries to comply to the ASC 842.

  • iLeasePro Cloud SaaS Solution

    4. Selection of Transition Method

    Choose between full retrospective or modified retrospective approaches to transition to ASC 842.

    Support from Lease Analysis Features: Evaluate the impact of each transition method on past and future financials using scenario analysis tools, facilitating informed decision-making.

  • iLeasePro Cloud SaaS Solution

    5. Detailed and Transparent Disclosures

    Create disclosures that include both qualitative and quantitative details of your leasing activities. Support from Lease Management Features: Generate comprehensive financial reports that fulfill disclosure requirements and provide insights into leasing strategies and impacts.

Implementing iLeasePro for Enhanced Compliance

iLeasePro Key Benefits

Centralized Lease Data Management keeps all lease information in one accessible place, ensuring consistency and accuracy.
Automated Compliance Calculations applies ASC 842 rules automatically to your leases.
Lease Management organizes lease data effectively, making it easy to update and review as needed for compliance and strategic adjustments.
Lease Analysis provides advanced analytical tools that model financial impacts, support lease decision-making, and optimize lease terms.

Preparing for Audits with iLeasePro

Audit-Ready Documentation
- Use iLeasePro to produce essential documents such as classification summaries, amortization schedules, journal entries, weighted lease term, weighted discount rate, and ASC 842 footnote data reports that are critical for audits.
- Regularly refine data entries to maintain accurate and up-to-date records that reflect current leasing conditions.

Ongoing Compliance and Strategic Management
- Continually reassess lease agreements under current standards to ensure compliance and to identify financial optimizations.
- Adjust lease management strategies based on analytical insights to mitigate risks and reduce costs.

  • iLeasePro Lease Portfolio Management

    Let iLeasePro Help You in Your Lease Accounting Journey

    Navigating ASC 842 compliance is a substantial but manageable task for transportation companies, especially with the right tools and strategies in place. By integrating structured lease management and comprehensive lease analysis via iLeasePro, your company can not only meet compliance requirements efficiently but also gain strategic advantages through enhanced lease portfolio management. Implement these steps to streamline your processes, pass audits confidently, and unlock financial improvements.

    To do this, call us at 888-351-4606, or you can email us at We also have plenty of great information about lease accounting software on our website, which is, and you can chat with a live representative there as well.

Let iLeasePro Simplify Your Lease Accounting

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Related: iLeasePro Free Trial, iLeaseXpress, iLeaseXpress Unlimited, ASC 842 Financial Reporting, ASC 842 Balance Sheet Reporting, ASC 842 Income Statement Reporting, ASC 842 Cash Flow Reporting, ASC 842 Statement of Shareholder Equity, ASC 842 Disclosure Notes, ASC 842 Management Discussion, ASC 842 Comprehensive Income, ASC 842 Glossary of Terms, ASC 842 Journal Entries, ASC 842 Software, When Is the ASC 842 Compliance Date, FASB Lease Accounting Software, Understanding the New FASB ASC 842 Lease Accounting Standard, How Does a Lease Balance Sheet Change After the New Standard?, Tracking Lease Details After ASC 842, Deferred Rent Explained Under the ASC 842, Guide to Lease Classification, Overview of Relevant Borrowing Rate, ASC 842 Footnote Disclosure, Lease Accounting, What Does Lease Accounting Software Do?, Key Features of A Lease Accounting Software, How to Never Miss Important Lease Dates, Scaling Your Lease Accounting Software to Your Business Needs, How to Select the Right Lease Solution, How to Set Up Lease Accounting Software, What is the Best Lease Accounting Software?, Overview of the Types of Leases, Equipment Lease Software, How the Right Lease Management Software Makes Equipment Leases Easier, Lease Tracking Software, How The Right Software Can Help You Manage Lease Data, Five Benefits of a SaaS Lease Management Solution, A Centralized Lease Portfolio Making Asset Management Easier, Lease Analysis 101, Lease Analysis: The Financial Metrics, Lease Abstraction, The Importance of Lease Abstraction for Lessees, The Lease Data an Abstract Should Include, What Software Do I Need for Lease Abstracting?, Navigating The ASC 842 Accounting Audit, Ultimate Lease Accounting Audit Checklist, Essential Guide To Engaging Auditors, Leveraging AI for Enhanced Year-End Audits Transitioning to the ASC 842 Standard Lease Document Management ASC 842 Short-Term Leases Practical Expedients Lease Modifications & Remeasurements Lease Variable Payments Embedded Leases Monitoring Critical Lease Dates