ASC 842 Software.

Simplifying ASC 842 Compliance.

Lessee

  • Operating Lease
  • Finance Lease
  • Low Value
  • Non Lease Contracts

Lessor

  • Sales-type
  • Direct Financing
  • Operating Lease

Lease Entry in Minutes

Lease Change

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Generate journal entries and reports in seconds.

Disclosure Reporting

Management Reporting

Lease Administration

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Implementation

Advanced Lease Management.

Enhance your workflow with advanced features, from sublease management to automation and beyond.

Sublease

Easily create and track sublease agreements, including multiple levels of subleases.

Comprehensive Lease Accounting Solutions

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Whether you are a small company with a limited number of leases or a large organization with a vast lease portfolio, our software provides a seamless and user-friendly interface to ensure your lease accounting remains well-managed.

Frequently Asked Questions

Our advanced Lease Accounting Software is designed to transform the way you manage and streamline your lease accounting practices. Our software solution is tailored to assist you in maintaining compliance with new lease accounting standards while making the process simpler, faster, and more efficient.

What is the application of ASC 842?

ASC 842, the new lease accounting standard, responds to the request for more transparency in companies’ lease accounting and financial reporting.

Before the advent of ASC 842, most leases, mainly operating leases, didn’t make their way onto the balance sheet. This obscurity left stakeholders with a blurred picture of a company’s financial health.

How does ASC 842 differ from its predecessor, ASC 840?

The primary difference between ASC 842 and its predecessor, ASC 840, is the recognition of lease assets and lease liabilities by lessees for most leases. ASC 840 allowed many leases, especially operating leases, to be only disclosed in the notes to the financial statements, whereas ASC 842 requires them to be recognized on the balance sheet.

Who is affected by ASC 842?

ASC 842 affects any entity that enters into a lease, with very limited exceptions. This includes both lessees (the entities that rent an asset) and lessors. (the entities that lease out an asset)

How does ASC 842 impact financial statements?

ASC 842 impacts the presentation of financial statements significantly. It requires lessees to recognize assets and liabilities arising from most leases on their balance sheets. This results in a more accurate representation of an organization’s financial position, by reflecting the organization’s rights to use an asset and the associated obligations.

When did ASC 842 become effective?

ASC 842 became effective for fiscal years beginning after December 15, 2018, for public business entities. For private companies and private not-for-profit entities, the standard became effective for fiscal years beginning after December 15, 2021.

What are the key challenges in implementing ASC 842?

Implementing ASC 842 may require significant effort and resources. Challenges may include identifying all lease contracts, interpreting the standard and its implications for each lease, changes in processes and controls, updating or acquiring new IT systems, and training staff.

 

Luckily, we have developed Black Owl to ensure you can meet compliance with ease. 

Still have questions?

If you have any other questions or need further information, don’t hesitate to contact us. We are here to help you!

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