Financial institutions: Overview of lessor accounting under ASC 842

Our white paper, Financial institutions: Overview of lessor accounting under ASC 842, provides an overview of the lessor guidance in Topic 842, Leases, in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC), that most affects financial institutions that provide lease financing to their customers. Implementation of ASC 842 has resulted (or will result) in financial institutions adjusting their existing financial accounting and reporting practices. In addition, the effects of implementing ASC 842 may have implications to a financial institution’s underwriting activities, internal control processes and the interaction between the underwriting, approval, credit monitoring, servicing and accounting functions within the financial institution. To assist in understanding the effects of the lessor accounting guidance in ASC 842 on a financial institution, our white paper highlights the operational considerations that may arise when applying specific aspects of that guidance.