What is ASC 842? A Quick Guide to the New Lease Accounting Standard
ASC 842 is a crucial lease accounting standard introduced by the Financial Accounting Standards Board (FASB) to enhance financial transparency. It requires companies to recognize lease liabilities and right-of-use (ROU) assets on their balance sheet, ensuring better comparability and reducing off-balance-sheet financing. ASC 842 impacts key financial metrics, including debt-to-equity ratios and EBITDA. This standard aligns with global accounting practices, offering increased clarity for investors and stakeholders.
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21-Feb-2025 06:08 pm
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