Lease Accounting Abstraction
What is ASC 842 LEASE ACCOUNTING abstraction?
A crucial technical accounting part of the new lease accounting process, lease abstraction, provides key elements of the lease agreement in a spreadsheet format. This spreadsheet format can easily be entered into an ASC 842 Lease Accounting Spreadsheet or uploaded into ASC 842 Lease Accounting Software. Remember, a services contract MAY NOT be a legal lease contract, but could be an accounting lease under ASC 842, Leases.
Who does lease abstraction?
Leasing contracts can be extremely cumbersome as they are primarily written for legal rather than for accounting reasons. Lease abstraction for accounting purposes should only be done by a Certified Public Accountant that specializes in the new lease accounting standards. Any errors in the key elements could potentially cause a material misstatement in the NPV of the lease liability. These critical aggregate calculations are then reported in numerous lease accounting financial statement disclosures.
Why choose 842Lease.com for your lease abstraction?
842Lease.com ONLY contracts with licensed CPAs who specialize and are competent in the new ASC 842(and IFRS 16) lease accounting standard. We take a sampling of your company’s lease contracts and receive a minimum of two bids on the lease abstraction engagement from our vast network of CPAs. These bids are usually returned within 24 hours. The follow up correspondence will also have accompanying credentials and references for the CPA firms bidding on the engagement. Contact us TODAY to get the lease accounting abstraction process started so your company will be compliant!
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