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...
In this blog, we will give an example of how to account for a lease modification under ASC 842 that does not expand or add additional assets to the original lease, but rather increases the lease term and changes the payment amounts. Because there isn’t an additional...
Similar to the FASB and IASB, the Governmental Accounting Standards Board released guidance updating the accounting for lease agreements. GASB No. 87, Leases, is effective for applicable governmental entities for reporting periods that begin subsequent to December 15,...
Accounting for an operating lease transition to ASC 842 Determine the lease term under current GAAP Determine the total lease payments under GAAP Prepare the straight-line amortization schedule under current GAAP Determine total payments over the remaining lease term...
This post is made up of two sections. The first is an overview of the facts regarding the right-of-use (ROU) asset and operating leases under ASC 842, the new lease accounting standard. The second is a full example how to account for an operating lease under ASC 842....
