The new lease accounting regulations are set to change the way companies account for leases. The new standards will require entities that lease assets, or “lessees” to recognize on their balance sheets, assets and liabilities of such leases....
The new leasing standard is one of the most significant changes in accounting to come about recently. ASC 842 strives to fundamentally record all leases on the balance sheet....
There are major changes in lease accounting that come with ASC 842 replacing the US GAAP standard 840. The new standard aims to overcome the major loophole in ASC 840 – “Off-Balance Sheet operating Leases”....