Learning from revenue recognition. The income statement accounting treatment for the two types of leases does not substantially change from ASC 840. By way of example, to find disclosure requirements for operating leases, one would start with the topic “Leases” (ASC 840); then go to the subtopic “Operating Leases” (ASC 840-20); then go to the section “Disclosures” (ASC 840-20-50); and then review the paragraphs in that section (e.g., ASC 840-20-50-1). in accordance with current GAAP (Topic 840, Leases). In preparing our disclosures, we evaluated the guidance in ASC 842-10-65-1(jj) regarding prior periods that continue to be in accordance with ASC 840. ASC 842 is the new lease accounting standard published by the Financial Accounting Standards Board (FASB), which public companies were required to adopt in 2019 and private companies are required to adopt in 2020.ASC 842 requires the tracking and disclosure of all a company's leased assets and replaces the previous US GAAP lease standard, ASC 840. ASC 850 Related Party Disclosures. The amendments do not change the existing disc losure requirements in Topic 840 … Under the prior lease standard (ASC 840), what are the requirements for financial statement presentation and disclosure related to finance and operating leases? Under the current lease standard (ASC 842), what are the requirements for financial statement presentation and disclosure related to leases? ASC 842, Leases, is a comprehensive change from previous guidance that requires both finance and operating leases to be recognized on the balance sheet, where only finance (historically called capital leases) were recorded previously. We provide relevant disclosures under ASC 840, and considered the overlapping disclosure requirements of both standards. In conjunction with the change of accounting treatment, the guidance also includes expanded disclosure requirements for all leases. Lease Classification. Leases were classified as either operating or capital under ASC 840. The new disclosure requirements will potentially require new process and controls, especially related to the accounting for operating leases. Accounting and reporting issues concerning certain related party transactions and … ASC 840 required the same disclosure for operating leases. ASC 842 also requires the lessor to provide disclosures required by ASC Topic 360 Property, Plant, and Equipment for assets leased under operating leases, which will result in similar disclosures to the disclosures required by ASC 840. ASC 842 contains new and expanded lease disclosure requirements that are significantly more comprehensive and complex than before. ASC Codification Topic 820: Fair Value Measurements and Disclosures: ASC Codification Topic 825: Financial Instruments : ASC Codification Topic 830: Foreign Currency Matters: ASC Codification Topic 835: Interest : ASC Codification Topic 840: Leases: ASC … When adopting the new revenue recognition standard, many companies didn’t consider disclosures until late … The Related Party Disclosures Topic provides disclosure requirements for related party transactions and certain common control relationships. 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