Do capital leases fall under ASC 842?

Okay, here’s a more human and relatable take on whether capital leases fall under ASC 842, trying to inject some personality and a bit of “real-world” frustration:

“So, do capital leases fall under ASC 842 now? Seriously? I mean, for years, we had operating leases treated one way, and capital leases another. I was so used to the old rules… It’s honestly a bit of a shock to the system to think that all leases are under ASC 842 now. Remember those days of just kicking the can down the road with off-balance sheet financing? Gone!

It’s definitely a pain, I won’t lie. All that paperwork, all those calculations… But hey, at least there’s that short-term lease exception, right? If a lease is 12 months or less, you can breathe a little easier and not have to go through the whole ASC 842 rigmarole. Thank goodness for small mercies, I say!

But still, having to meticulously check those renewal options… ugh, what a hassle. I remember spending hours last month going through a contract for a new copier, just to figure out if it was going to trigger ASC 842. You know, those kinds of things never used to be so complicated! It’s like everything has to be scrutinized now. Anyone else feel the same way?”

#Asc842 #Capitalleases #Leaseaccounting