Tag Archive: "#2022 Lease Accounting Series"
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In Time for the Holidays, the FASB Proposes an Accounting Standards Update Related to Common Control Leases
Keeping with the Rocky theme, on November 30, 2022, the FASB issued a proposed Accounting Standards Update (ASU) to respond to concerns associate with accounting for common control leasing arrangements. The FASB staff has been working diligently to issue this proposed ASU and they appear to follow the philosophy of Rocky Balboa in the 1976 […]
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Leases, If FASB Can Change, We All Can Change
For me, the development and implementation of FASB ASC 842, Leases played out like the plot of Rocky IV. After Rocky reclaimed his boxing championship title from Clubber Lang, he planned to relax and spend time with his family. Similarly, after the adoption of FASB ASC 606, Revenue from Contracts with Customers, it seemed time […]
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Last but Not LEASED
In our sixth installment of our lease series, we bring the series to close. Previously we covered: Overview of the standard – The Path of LEASE Resistance Lease Identification – At the Very LEASED Determining lease term – New LEASE on Life Calculating discount rates – LEASE Common Denominator Accounting alternative and policies – LEASER […]
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LEASER of Two Evils
In our fifth installment of our lease series, we cover accounting alternatives and policies. As Aristotle wrote, “the lesser evil can be seen in comparison with the greater evil as a good, since this lesser evil is preferable to the greater one.” It is a stretch to say that Leases (Topic 842) is evil, but […]
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LEASE Common Denominator
In our fourth installment of our lease series, we discuss discount rate considerations used when present valuing future obligations related to leases. Discount Rate Once the term of the lease is determined, the next logical step is to calculate the amount of the right-of-use asset and lease liability by present valuing the lease payments over […]
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New LEASE on Life
In our third installment of our lease series, we discuss lease term considerations. Lease Term If we follow the wisdom of Confucius, “Life is really simple, but we insist on making it complicated”. As they say though, “the Devil is in the details.” This means, if we don’t pay attention to the little things, we […]
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At the Very LEASED
This is our second installment of our lease series. This week our discussion focuses on lease identification. Lease Identification Under ASC 842, a lease exists when payment is made by one party to another in exchange for the right to control the use of an identified asset for a period of time. Identified assets can […]
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The path of LEASE resistance
It always amazes me the infinite possibilities that we encounter every day. Each decision results in new opportunities and challenges. Minor decisions that we think little of could have significant implications. When setting off on any journey, it is important to plan out your path and try to mitigate obstacles, so you do not lose […]
