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ASC 842 Leases on the Balance Sheet.
The FASB lease accounting standard ASC 842 requires organizations to account for leases as right-of-use assets and liabilities on the balance sheet.
This isn’t just a one-and-done disclosure, it’s a whole new approach to accounting (and an ongoing process).
Get the controls you need to stay compliant and lead to a real ROI.
Generate ASC 842 journal entries, disclosures, reports and footnotes required to transition to the new lease accounting standards.
Manage every modification and maintain compliance for day 2 and beyond – even as your leases and the regulatory requirements evolve.
Automate auditability with accurate reports.
Built by lease accounting experts, explore our wide selection of one-click report templates with the ability to perform comprehensive calculations backed by SOC I Type II certification. Or, configure one-off reports with our powerful ad-hoc reporting engine.
Expert advice at every stage.
Every implementation gets a dedicated team to help you get up to speed, get compliant, and get the most out of our software in 90 days or less.
Once you’re up and running, our team of experienced accountants, attorneys, and lease managers is here to help as your leases – and the regulatory requirements – evolve.
ASC 842 Frequently Asked Questions
ASC 842 is a lease accounting standard that was released by the Financial Accounting Standards Board (FASB) that replaces ASC 840. The standard was put in place to increase disclosure and visibility into leasing obligations for both private and public sectors. Previously, most leases were left off balance sheets, whereas now companies need to report right-of-use (ROU) assets and liabilities on almost all balance sheets.
The ASC 842 effective date differs for public and private companies. Public companies were expected to comply for fiscal years beginning after December 15, 2018. For private companies, the new standard took effect for fiscal years beginning after December 15, 2021.
Becoming ASC 842 compliant can be difficult if you don’t have all of your leases readily available. After you have confirmed you have all of your contracts and leases together, making sure that they are placed within your balance sheet correctly is the next step.
We can help skip all of that frustration with our ASC 842 lease accounting software. We can keep all of your ASC 842 leases in one place that will keep you automatically ASC 842 compliant around the clock.
There are no main differences between the impact of ASC 842 on public companies versus private. The only difference is the adoption date, which for private companies is fiscal years beginning after December 15, 2021.