ASC 842: guides and lease calculator
Plain-English guides to ASC 842, each with a worked example, and a lease calculator with operating and finance lease schedules.
Excel model
Each workbook comes filled in with a worked example, so you can see how it works before replacing the figures with your own. Cells to edit are marked.
5 guides
- ASC 842 leases explained3 minute readASC 842 lease accounting explained: right-of-use assets and lease liabilities, operating vs finance leases, what changed from ASC 840, and the numbers.
- Operating vs finance leases for lessees3 minute readOperating vs finance lease under ASC 842: the five lease classification criteria, the 75% and 90% guidelines, examples, and what each type does to the numbers.
- ASC 842 lessee journal entries with examples3 minute readASC 842 journal entries for lessees with a worked example: initial recognition, operating lease and finance lease entries, and right-of-use asset amortization.
- Discount rates under ASC 842, including the risk-free rate election3 minute readHow to choose the ASC 842 discount rate: the rate implicit in the lease, the collateralized incremental borrowing rate, and the risk-free rate election.
- Lessor accounting under ASC 8423 minute readASC 842 lessor accounting explained: classifying sales-type, direct financing and operating leases, the net investment, selling profit and lease income.
About these guides
The guides explain the standard in our own words, with our own examples, and point to the paragraphs they rely on. They are general information, not advice for your situation. Read them alongside the standard itself, and check when your regulator adopts it.