Lease Accounting Guide

Enhance the Clarity and Accuracy of Your Financial Statements

Accounting Standards Codification Topic 842, Leases, requires lessees to recognize most leases on their balance sheet through a right-of-use asset and corresponding lease liability. This could impact your ratios and certain covenants.

This guide will help you:

  • Identify leases
  • Distinguish operating leases from finance leases
  • Present leases on your balance sheet, income statement, and statement of cash flows
  • Account for nonlease components, purchase options, variable lease payments, and initial direct costs
  • Navigate lease modifications, subleases, sale-leaseback transactions, lease incentives, and related-party leases
Download the Guide