[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-177683-105":3,"detail-sidebar-cat-1-en-105":81,"doc-detail-177683-en":127},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","lease-footnotes-asc-842-change-in-accounting-principle-disclosure-revision","Lease Footnotes - ASC 842 - Change in Accounting Principle Disclosure - Revision","","Template for lessee lease disclosure aligned with ASC 842, with instructions to coordinate review with the relevant disclosure checklist and accompanying Excel tables. Includes guidance that gray sections are only needed in the initial adoption period and should be removed afterward. Provides a transition-period disclosure framework for significant “Change in Accounting Principle,” including suggested audit opinion language, adopted accounting policy details, and recognition/amortization mechanics for operating and finance leases. Also supplies example operating lease disclosures covering renewals, lease term determinations, discount rates, and variable lease payments tied to CPI.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/forms/","Forms",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/lease-footnotes-asc-842-change-in-accounting-principle-disclosure-revision/177683/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/lease-footnotes-asc-842-change-in-accounting-principle-disclosure-revision/177683.png","ImageObject",442,249,{"name":42,"@type":43},"Aurora","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/vnd.openxmlformats-officedocument.wordprocessingml.document","2026-10-23","2026-09-02",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",6,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What should be reviewed alongside this lease footnote template to meet complete requirements?","Question",{"text":63,"@type":64},"Review the applicable disclosure checklist and the accompanying Excel workbook of tables, including using the latest RSM version referenced for Word.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"When is the “Change in Accounting Principle” disclosure required, and how should it be presented?",{"text":68,"@type":64},"In the transition period, disclose “Change in Accounting Principle” if the impact is significant, adding the wording under the audit opinion’s “Basis for Opinion” paragraph.",{"name":70,"@type":61,"acceptedAnswer":71},"How does the template describe lessee lease accounting under ASC 842 for operating and finance leases?",{"text":72,"@type":64},"Operating leases recognize right-of-use assets and lease liabilities at commencement based on present value, then amortize operating lease liabilities to operating expenses on a straight-line basis; finance leases use the effective interest method with interest reported as interest expense.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},177683,1790676961,{"code":4,"msg":82,"data":83},"success",[84,89,94,99,104,109,113,118,123],{"id":85,"doc_module":22,"doc_module_name":25,"category_name":86,"show_sort_weight":87,"slug":88},11,"Presentations",90,"presentations",{"id":90,"doc_module":22,"doc_module_name":25,"category_name":91,"show_sort_weight":92,"slug":93},12,"Resumes",80,"resumes",{"id":95,"doc_module":22,"doc_module_name":25,"category_name":96,"show_sort_weight":97,"slug":98},14,"Invoices",70,"invoices",{"id":100,"doc_module":22,"doc_module_name":25,"category_name":101,"show_sort_weight":102,"slug":103},15,"Posters",60,"posters",{"id":105,"doc_module":22,"doc_module_name":25,"category_name":106,"show_sort_weight":107,"slug":108},16,"Social Media",50,"social-media",{"id":110,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":111,"slug":112},17,40,"forms",{"id":114,"doc_module":22,"doc_module_name":25,"category_name":115,"show_sort_weight":116,"slug":117},18,"Letters",30,"letters",{"id":119,"doc_module":22,"doc_module_name":25,"category_name":120,"show_sort_weight":121,"slug":122},21,"Paper Templates",5,"papers-templates",{"id":124,"doc_module":22,"doc_module_name":25,"category_name":125,"show_sort_weight":4,"slug":126},158,"General","general-158",{"code":4,"msg":82,"data":128},{"doc_id":79,"user_id":129,"nickname":42,"user_avatar":130,"doc_module":22,"category_id":110,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":131,"file_id":132,"file_url":133,"file_type":134,"file_size":135,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":30,"language":136,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":12,"update_tm":140,"read_time":22},4810365810221,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","This template should be reviewed in conjunction with the applicable disclosure checklist for complete requirements (see Lease Adoption folder for latest RSM version in Word) and the Excel workbook of accompanying tables. This template focuses on lessee leases – for clients with lessor leases, review the disclosure checklist. Disclosure requirements vary depending on the type of lessor lease. Sections in gray are only required in the initial period of adoption and should be removed thereafter.\nIn the transition period, disclosure is required of “Change in Accounting Principle” if the impact is significant. The disclosure requirements are met with the following:\nAdd to audit opinion below “Basis for Opinion” paragraph (GAM 708.08.A7\u0005):\nChange in Accounting Principle\nAs discussed in Note X to the financial statements, the Company adopted new accounting guidance, Accounting Standards Codification (ASC) 842, Leases, effective January 1, 2022. Our opinion is not modified with respect to this matter.\nAccounting policy:\nNote 2.\tSummary of Significant Accounting Policies (continued)\nLeases: Effective January 1, 2022, the Company elected to adopt Accounting Standards Codification (ASC) 842, Leases. The new standard was adopted using the modified retrospective transition method, under which periods prior to 2022 continue to be reported using historical accounting practices in accordance with ASC 840. The new standard provides a number of optional practical expedients in transition related to leases that commenced prior to the adoption of ASC 842. The Company elected the package of practical expedients, which does not require reassessment of lease classification, whether a contract contains a lease, or initial direct costs. The Company did not elect the use-of-hindsight practical expedient, which, if adopted, would have required the Company to use to reassess impairment of right-of-use assets and determination of lease terms, including with respect to renewals, terminations, and other purchase options. \u0005\nUpon adoption of ASC 840 on January 1, 2022, the Company recorded lease liabilities – operating of $_________ and offsetting right-of-use assets – operating leases of $_________. The difference between these amounts is related to the reclassification of accrued straight-line rent upon adoption. Capital lease obligations were also reclassified from [capital lease obligations / long-term debt or other liabilities] to lease liabilities – finance and related property and equipment under capital lease were reclassified to right-of use assets – finance leases. The adoption did not have a material impact on net income or cash flows and there was no cumulative effect adjustment recorded to retained earnings upon adoption.\nThe Company determines if an arrangement is a lease or contains a lease at inception of the agreement. In accordance with ASC 842, lessee leases are classified as operating or finance leases based upon various criteria. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of fixed lease payments over the lease terms. The lease term commences on the date the lessor makes the asset available to the Company and includes any renewal periods the Company is reasonably certain to exercise. Operating lease liabilities are amortized to operating expenses on a straight-line basis over the respective lease terms; related lease liabilities and right-of-use assets are reduced over the respective lease terms using the effective interest method. Finance lease liabilities are amortized using the effective interest method, with related interest reported as interest expense. Finance right-of-use assets are amortized to operating expenses on a straight-line basis over the lesser of the lease term or the useful life of the asset. The Company has elected not to recognize short-term leases (with terms of one year or less) as lease liabilities and right-of use assets; related expe","cbCaikwO54Xq9p4T","https://ap.wps.com/l/cbCaikwO54Xq9p4T","docx",32820,"English","# Lessee Lease Disclosure Requirements\n## Transition-Period “Change in Accounting Principle” Disclosure\n## Accounting Policy (ASC 842 Adoption)\n## Lease Classification and Measurement under ASC 842\n## Footnote Requirements\n## Operating Lease Example","[{\"question\":\"What should be reviewed alongside this lease footnote template to meet complete requirements?\",\"answer\":\"Review the applicable disclosure checklist and the accompanying Excel workbook of tables, including using the latest RSM version referenced for Word.\"},{\"question\":\"When is the “Change in Accounting Principle” disclosure required, and how should it be presented?\",\"answer\":\"In the transition period, disclose “Change in Accounting Principle” if the impact is significant, adding the wording under the audit opinion’s “Basis for Opinion” paragraph.\"},{\"question\":\"How does the template describe lessee lease accounting under ASC 842 for operating and finance leases?\",\"answer\":\"Operating leases recognize right-of-use assets and lease liabilities at commencement based on present value, then amortize operating lease liabilities to operating expenses on a straight-line basis; finance leases use the effective interest method with interest reported as interest expense.\"}]","Lease Footnotes - ASC 842 - Change in Accounting Principle Disclosure - Revision | DOCX",1788328846]