Disclosures Under ASC 842 (Part IV)

This article is the fourth in a series of articles exploring the new guidance on accounting for leases (Accounting Standards Codification 842) issued by the Financial Accounting Standards Board (“FASB”) in February 2016. This article discusses the disclosure requirements under ASC Topic 842 and highlights significant differences from ASC 840.

ASC 842 significantly expands the disclosures required by both lessees and lessors in financial statements for annual periods. In addition, ASC 842 expands lessor disclosure obligations to include in financial statements for interim periods. Similar to ASC 840, ASC 842 requires the disclosure of both quantitative and qualitative information about leases.

The only disclosures that ASC 842 doesn't change are those disclosures relating to leveraged leases. FASB carried forward the guidance on accounting for, and disclosure of, leveraged leases from ASC 840 into ASC 842 without change.