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PostedUpCPA Prep

Leases (ASC 842)

Card 1 of 30 reviewed
asc-842changes

What changed with ASC 842 vs. the old standard?

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The biggest change: operating leases now go ON the balance sheet (ROU asset + lease liability). Previously only finance/capital leases were on the balance sheet. Short-term leases (12 months or less) are exempt.