by George Azih | Jan 10, 2020
What is lease classification? Operating vs finance leases under ASC 842 Transference of title/ownership to the lessee Purchase option Lease term and the remaining economic life of the asset Present value vs fair value of the asset Asset specialization Operating vs....
by George Azih | Oct 8, 2019
What is a capital/finance lease? Finance lease vs capital lease Capital lease criteria: under 840 “Strong-form” vs. “weak-form” finance leases Finance lease criteria: how classification has changed under ASC 842 Finance lease accounting example...
by Abdi Ali | Oct 2, 2019
This is the second blog in our series on lease modifications and addresses a modification where the lease classification changes as a result of the modification. In this blog, we will give a comprehensive example under ASC 842 illustrating how to account for a lease...
by Jason Parker | Sep 27, 2019
The new lease accounting standard for governmental organizations, GASB Statement No. 87, goes into effect for all reporting periods that begin subsequent to December 15, 2019. Just over a month ago, GASB released the final implementation guide to provide additional...
by George Azih | Sep 20, 2019
There is a lot of misinformation regarding the new lease accounting rules. IFRS 16 and ASC 842 are summarized in another blog, but this post addresses the most common misconceptions about the lease accounting updates. 1. Lease capitalization is required for every...
by Jason Parker | Aug 9, 2019
GASB 87 vs. the current guidance: Key differences Scope of the new GASB lease accounting standard Step-by-step GASB 87 example using Excel Calculate the initial lease liability Calculate the initial lease asset value Record the opening journal entry under GASB 87 Book...
