In the News: 3 Steps to Understanding Lease Materiality

Jul 25, 2019 10:20:19 AM / by LeaseCrunch® posted in LeaseCrunch®, New Lease Standard

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The issue of materiality in the new lease accounting standard can be challenging, but LeaseCrunch, the only lease accounting software made by former CPA firm auditors for CPA firm auditors, says there are three key steps to understanding the issue.

“Now that operating leases must be captured on financial statements under the new lease standard, many CPAs are wondering about materiality,” said Ane Ohm, CEO of LeaseCrunch.  “For the international standard, IFRS 16, the materiality threshold is set at $5,000, meaning that leases under that amount do not need to be accounted for on the books.

“However, FASB did not set a similar threshold for materiality under the U.S. standard, ASC 842, so many organizations are wondering how to determine what operating leases are material enough that they should be added onto their balance sheets. 

“As with many aspects of the new lease standard, materiality is an area that requires judgment—though there are important considerations that can help.”

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In the News: 5 things you may not know about the lease standard

Jul 22, 2019 1:41:26 PM / by Ane Ohm posted in LeaseCrunch®, New Lease Standard

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As with any accounting standard shift, the new lease standard (ASC 842) brings momentous changes to accounting processes and financial reporting. While the main differences are well-known, I’ve taken a particular interest in the smaller nuances that live within the new standard. (Yes, I’m an accounting nerd and I love learning about and discussing all things related to leases!)

In this article, I’m sharing five of those intricacies that you may not know about the new lease standard, but that are critical to making the transition.

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