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Glass Buildings
Anchor 1

Lease
Accounting

  • FASB Guidance requires the following Lease Accounting classifications to be identified for Financial Reporting:

    • The Lessees to classify leases as either Finance or Operating lease based on executed and approved lease agreements. 

    • The Lessor to classify leases as Direct Finance, Operating Lease, or Sales-Type based on the executed and approved lease agreements.

  • All Private Business entities are required to be FASB ASC 842 compliant by December 15, 2021 (Fiscal Year), and December 15, 2022 (Interim Period within).

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Gather up all your leases in a centralized database

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Assess the details of each lease for key reporting characteristics

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Setup reports needed for filing

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Ensure you are audit ready

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Consider an early review with your auditors and credit providers

ASC 842: CLASSIFICATION CRITERIA

  • ​Short Term Lease

  • Non-Cancellable

  • PV of Lease Payments

  • Economic Life

  • Ownership Transfer

  • Likely Purchase

  • Specialized Assets

IFRS 16 & GASB 87: CLASSIFICATION CRITERIA

  • Short Term Lease

  • Non-Cancellable

  • Ownership Transfer

  • Interrelated Assets

  • Small Value

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