Lease Accounting Under ASC 842
Written by Nirmala Murugesan
Curated by Rubric Financial
Last updated
1 / 5
What Changed Under ASC 842
- ASC 842 requires most leases longer than twelve months to appear on the balance sheet.
- Under prior rules, operating leases like office space were often disclosed only in the footnotes.
- The standard applies to real estate, servers, vehicles, and equipment leases that convey a right to use an asset.
- The goal is to give financial statement users a clearer view of a company's lease obligations.
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About the author
Nirmala MurugesanCA, CPAPartner, Accounting
CA and CPA with 20+ years across U.S. GAAP, IFRS, and cross-border entity accounting. Leads accounting and controllership at StartupCFO: clean close, audit-ready books, and multi-entity structures for venture-backed startups.
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