A guide to lease accounting under ASC 842 assists lessees and lessors in applying the guidance in Topic 842, Leases, of the Financial Accounting Standards Board’s Accounting Standards Codification. The November 2024 edition of this guide has been updated for the following:
- Added discussion of:
- Terminal rental adjustment clauses
- Modifications that grant additional rights of use and make additional changes
- Short payments by a lessee
- Modifications that decrease the lessee’s right of use
- Sale of future operating lease payments that do not meet the definition of a receivable
- Lessor accounting for short payments by a lessee
- Classification of a lease acquired in an asset acquisition transaction
- Expanded discussion of the presentation of lease activity in the cash flow statement
- Other minor updates and clarifications
