Lease accounting (ASC 842, IFRS 16 or GASB 87) is not your average one-and-done disclosure. This whole new approach to accounting requires you to account for lease changes throughout the year with a higher level of scrutiny. A…
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The Visual Lease blog
As you navigate the complexities of ASC 842 compliance, you may be wondering how and when to account for leasehold improvements. What are leasehold improvements? From an accounting standpoint, leasehold…
Among the many different calculations used in lease accounting, the incremental borrowing rate may be one of the most misunderstood. The incremental borrowing rate (IBR) is the interest rate a lessee would…
In lease accounting, deferred rent happens when the cash rental payment varies from its expense recognized on the financial statements and occurs when the tenant is provided free rent in one or more periods, or if there are…
In recent months, organizations have sought greater flexibility in their leases. Uncertainty from the pandemic has created an uptick in lease contract negotiations, as well as the act of looking…
Lease concessions are discounts, incentives, or other benefits provided by landlords to tenants. Landlords sometimes offer lease concessions to entice tenants to sign a new lease — or concessions may…
The new lease accounting standards, ASC 842 and IFRS 16, bring greater visibility into corporate lease obligations. For many companies worldwide, the impact on their balance sheet is expected to…
Cell phone companies offer new phones to entice clients to renew their contracts. Retailers slash their prices to draw consumers to purchase. Car dealerships hand out freebies and discounts. In…
Changes in accounting standards have made lease accounting more difficult. Adopting IFRS 16 lease accounting, for example, has made compliance cumbersome as it involves adjusting to new policies, systems, and…
Beginning in 2006, there was a concerted effort by the two accounting standard bodies (FASB and IASB) to synchronize their respective standards on leasing to assure consistency and uniformity. The…
