Lease Accounting Under ASC 842
Written by Harry Prabandham
Curated by Rubric Financial
Last updated
1 / 5
What Changed Under ASC 842
- ASC 842 requires most leases longer than twelve months to appear on the balance sheet.
- Under prior rules, operating leases like office space were often disclosed only in the footnotes.
- The standard applies to real estate, servers, vehicles, and equipment leases that convey a right to use an asset.
- The goal is to give financial statement users a clearer view of a company's lease obligations.
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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