Accounting Research Tool
On the Radar


November 2021
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On the Radar

Lease accounting is currently like a tale of two cities: companies that have adopted the new leasing standard, ASC 842, are in one place and entities that have not yet adopted the standard are in another. While companies that have already adopted ASC 842 may be focusing more on ongoing FASB activity1 and the effects of the COVID-19 pandemic on their leasing arrangements, entities that have not yet adopted ASC 842 are still grappling with implementation challenges. Because public business entities (PBEs) were required to implement the new leasing standard for years ended December 31, 2019, most public companies have been accounting for their leases under the new rules for nearly three years. The effective date for non-PBEs, on the other hand, is still to come and is rapidly approaching. See the Implementation Considerations for Entities That Have Not Yet Adopted ASC 842 section below for more information about the effective dates for non-PBEs.


This On the Radar takes into account all FASB standard-setting activity through October 31, 2021.
Entities should consult with their accounting advisers regarding the acceptability of the model applied to account for the concession when not applying the modification framework.