Navigating ASC 842’s Impact on Loan Covenants ASC 842 changes lease accounting, impacting loan covenants by increasing liabilities and altering financial ratios. Learn how to navigate these challenges effectively… Read More → February 12, 2025 Navigating EBITDA-Based Covenants Under ASC 842 AS...
Since the financial impact of lease renewals has fundamentally changed, lease scenario planning, balance modelling, and assessments are important in the decision making process that will include involvement from the controller and CFO.Are you already compliant with IFRS 16 and ASC 842?
ASC842, also known as Topic 842, is the currentFASBlease accountingstandard and dictates how organizations reporting under USGAAPshould record the financial impact of their leases. The standard replacedASC 840and, among other changes, requires organizations to record the majority of their leases on t...
This note provides an overview of the accounting changes and highlights key issues related to financial analysis and valuation with guidance on how to avoid common errors and accurately calculate and compare enterprise value, EBIT, EBITDA, valuation multiples and key valuation ratio...
The ASC 842, GASB 87, and IFRS 16 lease accounting rules require the capitalization of almost all real estate, property and asset leases. They also require registering additional lease related information. This will impact the day-to-day business of lease administration and associated IT solutions...