Tag Archives: leases

Variable Leases under ASC 842: First Evidence on Properties and Consequences 

By | December 13, 2022
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The new lease accounting standard ASU 2016-02, Lease (Topic 842), codified as ASC 842, requires firms to recognize both finance and operating leases on their balance sheets. However, the Financial Accounting Standards Board (FASB) made an exception for leases with variable payments, which can still be kept off-balance-sheet, affecting a sizable portion of total lease… Read More »

Clarification or Confusion: A Textual Analysis of ASC 842 Lease Transition Disclosures

By | September 5, 2022
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In our recent paper, we study the textual meaning of the financial statement transition disclosures in firms’ filings with the Securities and Exchange Commission (SEC) explaining the likely effects of the adoption of Accounting Standards Codification (ASC) 842 on leases. Under President Franklin Delano Roosevelt, Congress established that the SEC’s backbone be based on a sufficient… Read More »