Implementing ASC 842 New Lease Accounting Standards

Determining Right-of-Use Assets, Financial Reporting Requirements, IFRS 16 Distinctions, Non-Lease Components

Recording of a 110-minute CPE video webinar with Q&A

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Conducted on Wednesday, November 3, 2021

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Course Materials

This course will analyze the Financial Accounting Standards Board's (FASB) new lease methods and rules in ASC 842. Our panel of accounting and auditing experts will assist accountants and auditors in defining what constitutes a lease, classifying leases, and determining proper financial statement reporting and disclosure requirements under the new standard.


According to ASC 842, "a contract is, or contains a lease if the contract conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time, in exchange for a consideration." The most notable change under the new accounting standard that replaces the old ASC 840 is that operating leases or right-of-use (ROU) assets are included on the balance sheet. Already implemented by public companies, the effective date for the new lease accounting standards was postponed and is effective for annual reporting periods beginning after Dec. 15, 2020 (2021 for calendar year-end companies) for private companies and most not-for-profit organizations. Early implementation is permitted.

Accountants must reexamine existing leases and lease accounting methods. Obvious considerations include how the new standards affect lease modifications, abandonments, and subleases. Further challenges include determining what constitutes a lease under the new definition, separating a lease from its non-lease components, and the overlap of ASC 842 with other accounting standards, including ASC 360 Impairment or Disposal of Long-Term Assets. Additionally, although there are many similarities between ASC 842 and the International Accounting Standards Board leases standard, IFRS 16, there are significant inconsistencies between the two sets of guidelines.

Listen as our panel of accounting and auditing experts provides an analysis of the requirements of the recent FASB standard, ASC 842 for Lease Accounting, including tips for implementing and overcoming the challenges of its requirements.



  1. ASC 842: an overview
  2. What is a lease under ASC 842?
  3. Identifying lease and non-lease components
  4. Determining lease classification
  5. Applying the appropriate accounting model
  6. Financial statements and disclosures
  7. Implementing the new standard
  8. Other relevant standards
  9. IFRS 16 differences


The panel will review these and other critical issues:

  • Separating lease and non-lease components in contracts
  • Accounting for lease modifications and abandonments
  • Required disclosures for lessors under ASC 842
  • Differences in international and U.S. lease reporting standards under IFRS 16 and ASC 842
  • New reporting requirements for operating leases or ROU assets
  • Recommendations for successful implementation and compliance with ASC 842


Eardley, Greg
Greg Eardley, CPA

Director, Accounting & Reporting Advisory Services

Mr. Eardley has 14 years of accounting experience focused on providing financial accounting advisory services,...  |  Read More

Eilertsen, Jon
Jon Eilertsen, CPA

Partner, Accounting & Reporting Advisory Services

Mr. Eilertsen serves as a partner for the firm’s Accounting & Reporting Advisory Services group (ARAS). As a...  |  Read More

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