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CPE Article Introduction to Lessee Accounting (Topic 842, Leases)42TodaysCPACurriculum: Accounting and auditing Level: Basic Designed For: Public practitioners and business and industry Objectives:

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What is lessee accounting?

Lessee accounting is the process of accounting for leases from the perspective of the party leasing an asset.

Who is required to file lessee accounting?

Any entity that enters into lease agreements and needs to comply with accounting standards such as ASC 842 or IFRS 16.

How to fill out lessee accounting?

Lessee accounting involves recognizing lease liabilities and right-of-use assets on the balance sheet and accounting for lease payments over the term of the lease.

What is the purpose of lessee accounting?

The purpose of lessee accounting is to provide a true and fair view of an entity's financial position by reflecting all lease obligations on the balance sheet.

What information must be reported on lessee accounting?

Information such as lease liabilities, right-of-use assets, lease terms, and lease payments must be reported on lessee accounting.

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