ASC 842: Discount rate for lessees what are the options?

As we have described in previous reports, FASB Accounting Standards Codification (FASB ASC) 842, Leases, significantly increases the number of leases that companies report on balance sheets. As a result, the importance of accurately estimating lease discount rates, which can have a significant impact on lease liabilities and right-of-use (ROU) assets, cannot be overstated. Under FASB ASC 842, every lease with a lease term of more than a year must be reported on the balance sheet as a ROU