White paper: ASC 842 Lease Accounting Standard Handbook

The US GAAP lease accounting standard, ASC 842, requires that all leases, both operating and finance, are moved on-balance sheet unless the lease term is less than 12 months. The on-balance sheet requirement of the new standard is creating a huge implementation challenge for private companies. The challenge is worse for companies with large equipment leasing portfolios, because equipment leasing programs are typically decentralized, making it difficult to track down the data needed to comply with the new standards.