Glass Buildings
 

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).

Picture11.png

Gather up all your leases in a centralized database

Picture12.png

Assess the details of each lease for key reporting characteristics

Picture13.png

Setup reports needed for filing

Picture14.png

Ensure you are audit ready

Picture15.png

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