In accounting software provider LeaseQuery’s first benchmarking analysis of lease liabilities, it found balance sheet liabilities increased nearly 16 times as operating leases came onto the balance sheet for the first time upon adoption of ASC 842, Leases.
The standard requires recognition of a right-of-use asset and a corresponding lease liability at lease commencement. Private companies will have to comply with ASC 842 by the end of this year.
