Ryan Hendrie

Blog Article

FASB approves discount rate amendment for nonpublic entities

On Wednesday, September 15, 2021, the Financial Accounting Standards Board (FASB or Board) approved an amendment on the proposed Accounting Standards Update, that provides nonpublic organizations with additional flexibility in how they determine the discount rate they use when classifying their leases. The relief granted by the Board is intended…

Ryan Hendrie | 30/09/2021 | 2 min read

Blog Article

ASC 842: FASB proposes discount rate amendment for nonpublic entities

On June 16, 2021, the Financial Accounting Standards Board (FASB or Board) issued a proposed Accounting Standards Update (ASU) amending Accounting Standards Codification (ASC) 842. The amendment would provide private (nonpublic) organizations, including all not-for-profit entities, with additional guidance and flexibility in how they determine the discount rate. Currently, ASC…

Ryan Hendrie | 08/09/2021 | 2 min read

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ASC 842 Summary: What lessees need to know

Replacing FASB ASC 840, the revised ASC 842 was published in 2016 along with the associated and similar IASB IFRS 16. For public listed companies it came into effect for fiscal years and interim accounting periods beginning after December 19, 2018 and private companies were scheduled for compliance from those periods…

Ryan Hendrie | 10/12/2020 | 10 min read

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ASC 842: Lease Modifications & Remeasurement

Whether intended at the outset or found necessary during the initial or additional lease periods, lease modifications have always been common but accounting for these changes is that much more complicated under ASC 842. A typical modification may arise when a lessee requires a break and rewrite or perhaps recognises…

Ryan Hendrie | 08/12/2020 | 5 min read

Blog Article

Identifying Embedded Leases Under ASC 842

Every accounting standard has its own set of challenges, but there’s one aspect of all of the guidelines relating to ASC 842 that is especially challenging and that is the issue of addressing embedded leases. An embedded lease, a term not defined in either ASC 842 or IFRS 16, refers…

Ryan Hendrie | 24/09/2020 | 5 min read

Blog Article

ASC 842 Disclosure Requirements for Lessees

In February 2016, the Financial Accounting Standards Board (“FASB”) issued the new leasing standard in ASU 2016-02 (“ASC 842”) for both lessees and lessors for use when preparing financial statements. ASC 842 directs that a lessee will recognize right-of-use (“ROU”) assets together with associated lease liabilities on the balance sheet…

Ryan Hendrie | 22/09/2020 | 7 min read