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.

This spotlight considers implications of the standard on P&U entities, including power purchase agreements, transportation and storage contracts, pole attachments and easements, and what entities should consider in making the determination to apply lease accounting under ASC 842.

This guide helps audit committee members and management better understand the requirements, roles, and responsibilities of the audit committee.

detailed resource and in-depth technical guide for e g Standards Codification (ASC) Topic 840, Leases, and creates ASC 842, Leases. For titles of additional ASC references, see Deloitte’s “T les of Topics and Subtopics in the FASB Accounting St

Meet with relevant departments to understand the type of service contracts that exist and discuss the specific concepts of the ASC 842 definition of a lease. Translate the technical concepts of the rules into language that non-accountants will likely understand.

Workflow management: Obtain an audit trail and timestamp of each lease review event. Validation engine: Facilitate the organization's review of data quality and completeness. Help text: Help icons included next to certain fields guide users through their abstraction.

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

ASC 842-10-15-29 requires an entity to separate a right to use land from the rights to use other underlying assets (e.g., from the right to use a building that sits on top of the land) unless the effect of separating the land is insignificant to the resulting lease accounting.

ASC 842 defines a lease as “a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.”