Asset-Level Lease Accounting

Asset-Level Lease Accounting

Why It is Required by the ASC 842 and IFRS Lease Accounting Standards

Asset-Level Lease Accounting White Paper

Asset-level lease accounting is the process of recording transactions by generating debits and credits for each asset on a lease contract. Variations in asset scenarios are common with equipment leases and complex real estate leases. If you perform asset-level lease accounting, you can treat each asset as its own lease and capture the variability that naturally occurs in your operations.

This White Paper includes:

  • Differences between Contract and Asset-Level Lease Accounting
  • Examples of Impacted Decisions, Judgments, and Events
  • Asset-level Data Needed at the Start, Middle, and End of Term
  • Financial, Tax, and Management Accounting Requirements
  • Key Implementation Challenges with Data and Accurate Calculations

Examples Covered Include:

  • Blade Servers with Different End-of-Term Decisions
  • Lease Lines for Material Handling Equipment
  • Super-Asset Aggregation of Data Center Technology

Also Check Out

Understand how the costs are categorized and valued, as well as the available practical expedient to not separate components.

Asset-level lease accounting means collecting a lot of data fields from each lease. Make sure you don’t miss any with this checklist.

Lease Accounting Software Evaluation Guide

The Evaluation Guide includes a comprehensive checklist of features for real estate and equipment lease accounting and administration.