Accounting for Every Lease Type | Webinar
In the webinar "Accounting for Every Lease Type," Jess Vento and Matt Jensen explain the differences in accounting treatments for real estate, vehicle, and equipment leases under ASC 842 and GASB 87, highlighting classification criteria, common challenges, and best practices for compliance.
Accounting for Every Lease Type: Real Estate, Equipment, and More
Not all leases are the same, and small differences can significantly impact accounting treatment. In this webinar, Jess Vento from LeaseCrunch and Matt Jensen from The Bonadio Group break down the key distinctions between real estate, vehicle, and equipment leases under ASC 842 and GASB 87. They discuss what to watch for when classifying leases, common challenges, and best practices to stay compliant.
Related
Sample Lease Accounting Reports
The Sample Lease Accounting Reports provide various exportable report types—including Journal Entries, Amortization Schedules, Footnote Disclosures, and All Lease Data—across ASC 842 Lessee and Lessor, GASB 87 Lessee and Lessor, and GASB 96 standards, each export featuring three tabs (Data, Criteria, and Lease) to display selected data, filters, and lease details, with some reports offering functional currency translation options.
In the News: FASB Releases 2022 GAAP Taxonomy
The Financial Accounting Standards Board (FASB) released its 2022 GAAP Taxonomy update, introducing new reporting elements such as credit losses excluding accrued interest, reinsurance contracts, pledged assets, debt obligations with recourse, changes in reporting entity, balance sheet offsetting, and financial statement location clarifications, while also deprecating obsolete guidance, refining labels, and modifying references to enhance clarity and usability for accounting and financial reporting.
Accounting for ASC 842 in Your Cash Flow Statement
The article explains that under ASC 842, leases are recorded on the balance sheet as right-of-use (ROU) assets and lease liabilities without immediate cash flow impact, with operating lease payments classified as operating activities and finance lease principal payments as financing activities on the cash flow statement, while initial recognition of ROU assets and lease liabilities are disclosed as non-cash investing and financing activities, and lease cash incentives from lessors to lessees are also considered in the presentation.
Lease Commencement Dates and What They Mean for Lessors and Lessees
The lease commencement date, as defined by ASC 842, is the specific date when the lessee gains control and use of the leased asset, marking the start of lease accounting and the initial lease period, which differs from the lease signing or effective date and is crucial for determining lease classification and discount rates for both lessors and lessees.
Navigate GASB 87 and 96 Standards with Accounting Solutions
The article explains how government entities must adapt to GASB 87 and 96 standards by accurately recognizing and disclosing leases and subscription-based IT arrangements, emphasizing the importance of understanding these requirements and utilizing specialized accounting software to automate compliance, manage lease and subscription terms, and ensure precise financial reporting.
GASB 87 & GASB 96: Basic Principles to Advanced Practices
The session provides a comprehensive overview of GASB 87 and GASB 96, detailing lease recognition, measurement, disclosure, subscription-based IT arrangements, and lease modifications to help organizations achieve accurate lease accounting and compliance.