The ASC 842 Lease Accounting Workbook handles your full lease portfolio — ROU asset calculation, lease liability amortization, period journal entries, balance sheet rollforward, and disclosure table — in a single audit-ready Excel file.
ASC 842 journal entries trip up even experienced controllers. The initial recognition entry, the monthly operating lease expense, and the finance lease split between depreciation and interest all follow specific patterns. Here’s an ASC 842 lease accounting example with every entry you need, with real numbers.
IFRS 16 and ASC 842 both eliminate off-balance-sheet operating leases, but the two standards diverge on lease classification, discount rates, short-term exemptions, and income statement presentation. If you report under both — or are switching — here’s the difference between IFRS 16 and ASC 842, line by line.
Under ASC 842, every lease is either operating or finance — and the classification changes your income statement, cash flow, and audit disclosures. Here’s how to classify correctly and account for each type.
Building an ASC 842 amortization schedule in Excel is manageable for one lease. With five or more, the manual approach breaks down fast. Here’s exactly how the schedule works — and what it takes to maintain it at scale.
The ROU asset at commencement equals the lease liability plus initial direct costs plus prepaid rent minus lease incentives received. Most teams get the lease liability right but miss the adjustments. Here’s how to calculate it correctly.
Under ASC 840, escalating rent and free months produced a deferred rent liability. Under ASC 842 the same difference sits inside the right-of-use asset. One worked lease shows both sets of entries, proves they tie to the cent, and gives you the Excel formulas.
Everything a controller needs to run ASC 842 in Excel — what counts as a lease, the five classification tests, the discount rate election, initial and subsequent measurement with one worked example, the journal entries, modifications, the disclosures, and where ASC 842 splits from IFRS 16. With links to the deep-dive guides and a workbook that ties to $0.
The five technical-accounting workbooks a SaaS controller maintains every close — leases, commissions, fixed assets, SaaS metrics, runway — at $249 instead of $693, plus the close checklist that ties them together.