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