ASC 842: Lease/non-lease practical expedient – reporting consequences
Resources
AICPA logo
Cart
searchSearch
search
burger
AICPA logo
  • Home
abstract view of a skyscraper
Resources

ASC 842: Lease/non-lease practical expedient – reporting consequences

Jun 29, 2022 · 230.7 KB Download

Resource

available

FASB ASC 842-10-15-37 provides a practical expedient to combine lease and non-lease components and treat the combined component as a lease component (practical expedient) which may be elected by underlying class of assets. The FASB provided the practical expedient to relieve cost and administrative burden of allocating consideration based on observable standalone selling prices to separate lease and nonlease components which may be of significant benefit to some lessees. The practical expedient should prove to be a significant benefit to many entities. Importantly, as entities adopt FASB Accounting Standards Codification (FASB ASC) 842, Leases, some are encountering significant contracts with both lease and non-lease components where delicate financial reporting tradeoffs of election/nonelection of the practical expedient need to be considered. In this report, we will discuss these tradeoffs.

Download the CPEA report: FASB ASC 842: Lease/Non-Lease Component Practical Expedient- Balancing financial reporting consequences

File name: CPEA June 2022 special report - FASB ASC 842 lease-nonlease component practical expedient.pdf

What did you think of this?

Every bit of feedback you provide will help us improve your experience

What did you think of this?

Every bit of feedback you provide will help us improve your experience

Related content