Lease Accounting That’s as Easy as 1-2-3
Complying with lease accounting standards doesn’t have to be intimidating. Leasecake has everything you need to meet and maintain ASC 842 compliance.
Lease Accounting Features
Our 1-2-3 approach to lease accounting provides you with all the data gathering, reports, and exports needed to comply with FASB and IFRS standards.
1) Lease Measurement
- Discount rate (IBR or risk-free treasury rate)
- 12 vs. 13 accounting periods
- Early access dates
- Tenant improvement allowance
- Adoption date
- Lease inventory
- Renewal options
2) Journal Entries and Reports
- ASC 842 journal entries
- Monthly rent payments
- Triple net
- Amortization schedule
- And more …
3) Closing Your Books
Quick business decisions require real-time data. Reports from Leasecake will reduce your time to close the books and keep you consistent at month-end.
ASC 842 Part I: What Is It and What Exactly Is Changing?
After a one-year deferral due to the pandemic, ASC 842 goes into effect for private companies at the end of this year. This new accounting standard requires companies to track and disclose all leased assets — including commercial real estate leases.
ASC 842 Part II: 7 Steps to Complying With the New Lease Standard
No matter the size of the company, there are a series of steps that are pretty consistent for anyone adopting the new standard. Depending on how many leases you have, this can be more time-consuming than you expect. So if you haven’t started preparing yet — then now is the time.