When you have a lease agreement, lessees and lessors usually decide upon dates for when payments are due. Whether it’s a lease or a different type of asset, there’s a set date due date for payments made to the lessor. But what happens when a lessee pays early? How does this affect the balance sheet and your journal entries?  ..read more

When it comes to fixed and variable lease payments, ASC 842 can make things a little sticky. There are situations where fixed lease payments become variable, then other situations where variable lease payments become fixed, and it can all end up downright confusing in the end. Jump into this blog if you want to clear up some of the fog around these two types of lease payments in order to improve your lease accounting and ensure accurate journal entries ..read more

Deferred and accrued rent are somewhat related in that they both have to do with some element of the rent and its payment to the lessor, but they differ when it comes to when that payment is made, and how much it is ..read more

Single net, double net, modified gross, oh my ..read more

What Exactly is the Cumulative Effect Adjustment? The cumulative effect adjustment is an adjustment to the opening balance of equity based on the retrospective adjustment of the financial statements to adopt new accounting standards or to re-state previously issued financial statements. The adjustment is disclosed in audited financial statements in accordance with GAAP ..read more

What is the Statement of Cash Flows for 842? The statement of cash flows provides key information about an organization’s financial health and ability to generate cash. The statement describes the sources and uses of cash during a certain period of time ..read more

What are ASC 842 Month to Month Leases?     What is the Term of a Month to Month Lease?     Accounting for ASC 842 Month to Month Leases     Do You Capitalize a Month to Month Lease?     Lease Accounting for ASC 842 Month to Month Leases     FAQS ..read more

GASB 87 and GASB 96 are similar, yet very different. Both share the characteristic of further complicating lease accounting in the name of financial clarity. However, whereas GASB 87 is an accounting standard for leases, GASB 96 is an accounting standard for SBITAs, or subscription-based information technology arrangements.  ..read more

The Governmental Accounting Standards Board (GASB) Statement No. 96, known as GASB 96, has ushered in a new era of accounting guidelines for government entities. Createdto improve the transparency and comparability of governmental financial statements, GASB 96 expands upon previous accounting standards. It aims to provide a more accurate reflection of the financial obligations that governments incur through terms of their Subscription-Based IT Arrangements (SBITAs). With the implementation of new accounting standards comes the need for new disclosure requirements. GASB 96 defines these requir ..read more

Navigating the complexities of lease accounting can be a daunting task, especially with the introduction of lease accounting standards like ASC 842, IFRS 16, and GASB 87. As an essential component of lease accounting, understanding and accurately calculating the lease discount rate is critical for lessees. Let’s take a look at the lease discount rate under these new lease accounting standards, the factors that impact it, and the steps you can take to calculate it with confidence ..read more