ASC 842 Leases fundamentally changes lease accounting for lessees. Operating leases which used to be treated “off-balance” are now required to be recognized on-balance, resulting in the recognition of a right-of-use asset and a lease liability. Thus, accounting for leases may lead to a significant increase of total assets and liabilities in the statement of financial position and affect key financial rations. With the introduction of the new topic, companies are facing major procedural challenges which entail the need for systematic preparation and monitoring of all leases.
This white paper gives a concise overview of the new guidance and its major impacts on lessees.
You will learn:
- More about the objective of ASC 842
- More about the new requirements introduced by ASC 842
- How the new accounting standard will affect lessees
- How you can use LucaNet to manage the implementation of the new requirements