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Important year-end lease reporting reminders

Hot Topic | December 2023

Key presentation and disclosure reminders for preparing financial statements under ASC 842.

This Hot Topic highlights important presentation and disclosure reminders under ASC 842 as companies prepare their year-end financial statements.


  • Companies preparing financial statements and disclosures after the adoption of ASC 842.

Relevant dates

  • Effective immediately

Key impacts

  • ASC 842 (lease accounting) includes significant disclosure requirements and specific presentation requirements.
  • The SEC staff have commented on various aspects of companies’ accounting and reporting under ASC 842, for both lessees and lessors. Those comments most frequently relate to incomplete or missing disclosures required by sections 842-20-50 (lessees) and 842-30-50 (lessors).

Report contents

  • Key impacts
  • Operating and finance lease balances must be presented separately from each other
  • Lessee discount rate disclosures
  • ROU asset amortization in operating leases
  • Operating lease cash flow presentation
  • Practical expedient to not separate lease and non-lease components
  • Variable lease and short-term lease cost disclosures
  • Nature of variable lease payments disclosure
  • Lease-related non-GAAP adjustments

Download the document:

ASC 842

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