Explore hot topics, common pitfalls, and more information related to why entities that have adopted ASC 842 should continually monitor, evaluate, and update their lease-related …

ASC 842 introduces a lessee model that brings most leases onto the balance sheet; aligns certain of the underlying principles of the lessor model with those in ASC 606, the FASB’s new revenue recognition standard; and addresses other concerns related to the nearly 40-year-old leasing model from the previous guidance.

Antecedentes En julio 30, 2018, FASB emitió la ASU 2018-111 para proporcionarles a las entidades alivio de los costos de la implementación de ciertos aspectos del nuevo estándar de arrendamientos, la ASU 2016-022 (codificada como ASC 842).3 Específicamente, según las enmiendas contenidas en la ASU 2018-11:

Explore the opportunities and insights created by an audit and how a Deloitte audit—independent, innovative, and known for quality—can make a difference.

Accounting Standards Codification (ASC) Topic 842, Leases, changes the rules that govern accounting for substantially all leases, including equipment and real estate leases.

With ASC 842 taking efect for nonpublic, calendar-year-end entities on January 1, 2022, it may seem like there’s plenty of time for CFOs to address the implications pertaining to tax accounting for leases, but starting early is advised.

ASC 842 (including the presentation and disclosure guidance) applies to the lease component, while other guidance, typically ASC 606 (including the presentation and disclosure guidance), applies to the nonlease component.

Disclosures under the new lease accounting standard (ASC 842) are intended to give financial statement users a better understanding of an entity’s leasing activities, helping them “assess the amount, timing, and uncertainty of cash flows arising from leases.”1 However, achieving that objective and satisfying the new standard’s ...

The renewable energy sector may see significant changes and experience challenges as a result of ASC 842, particularly in an entity’s determination of whether the contract is or contains a lease (e.g., in the assessment of the impact of involvement in the generating asset’s design and in the determination of how to evaluate certain rights ...

Get a closer look at analysis and guidance for lease disclosure compliance under ASC 842—and learn how it could significantly affect your business.