Lease Accounting Challenges

Companies are facing a variety of challenges under the new lease accounting standards, ASC 842 and IFRS 16. Learn more about each of these technical accounting challenges and best practices for handling them.

Debt Covenants

The new lease accounting standards may impact debt and loan covenants, as well as future creditor relationships.
Read more

Incremental Borrowing Rate

The incremental borrowing rate, or IBR, will be used to calculate lease liabilities under the new standards.
Read more

Lease Definition

Learn how to determine whether a contract contains a lease or not using the new lease definition established by the new standards.
Read more

Lease and Non-Lease Components

Separating lease and non-lease components requires knowing how to define the components and how to calculate standalone observable prices.
Read more

Lease versus Buy Strategy

Many companies wonder whether the new lease accounting standards should change their lease versus buy strategy and how to analyze this process.
Read more

Lessor Accounting

While most lease accounting changes affect lessees, there are still some impacts lessors need to be aware of as they adopt the new standards.
Read more

Sale Leaseback and Build-to-Suit

There are new requirements for sale leaseback and build-to-suit accounting under the new lease accounting and revenue recognition standards.
Read more

Tax Impact

Tax accounting for leases may also be impacted by ASC 842 and IFRS 16. The impacts may include changes to deferred, federal, and state taxes.
Read more

Transition

The available transition options and practical expedients have changed since the initial publication of the lease accounting standards in order to make adoption easier.
Read more

Subscribe to the Lease Accounting Newsletter

You’ll get tips on the new lease accounting standards, lease administration and best practices on data collection, budget planning, project strategies, and more.