STAY COMPLIANT WITH THE STANDARD
UNDERSTANDING LEASE STANDARD ASC 842
- Increase transparency and comparability in financial reporting
- Requires lessees to recognize most leases on their balance sheets
- Recognize operating leases and finance leases
- Record right-of-use (ROU) assets and lease liabilities
- Lease term and present value of lease payments determine recognition and measurement
- Different treatment for operating leases and finance leases in income statements
- Additional disclosures to provide users with more information
Joel S. Mutnick, CPA
Assurance Partner