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Roadmap to Lease Standard ASC 842
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
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