Transition from ASC 840 to ASC 842

Core TSIs : Lease Accounting : Lease accounting concepts : Transition to new accounting standards : Transition from ASC 840 to ASC 842

For the transition to the new standard, ASC 842, there is only one option: transition based on modified retrospective.

Under this approach, a company applies the new standard from the beginning of 2019. The contract line's history, based on the old ASC 840 standard, is retained. Contract lines based on this standard will end at the end of the 2018 financial year. Contract lines based on the new ASC 842 standard start per 2019.