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....
Do you report under GAAP or IFRS? If so, it’s likely that your organization is large enough to include both equipment and real estate leases in its lease portfolio. After speaking with hundreds of companies, LeaseQuery discovered that these have historically...
In May 2013, the FASB and IASB released an Exposure Draft proposing a new approach to lease accounting. The proposed accounting rules will require recognition of all leased assets as “Right of Use” assets (ROU assets), and recognition of a lease liability (an...
When does a lease start for accounting purposes? How can you tell when the lease starts and when is the lease end date? Every lease has a “start date,” but many people, accountants included, do not understand what that date really is or how to find it....
In our last blog, we explained how to account for leases where the tenant must take additional property (or expand) in the future. Today’s blog addresses accounting for leases which include a termination at will option. It was inspired by the following question we...
