Workflow Guide

    How to Automate ASC 842 Lease Accounting Compliance

    Last updated 2026-03-122 min readWorkflow Guides
    The Problem

    ASC 842 and IFRS 16 lease accounting standards require organizations to recognize lease assets and liabilities on their balance sheets. Compliance requires comprehensive lease data extraction including: lease term, payment schedules, renewal option likelihood assessments, variable payment terms, and discount rates. For CRE firms with hundreds of leases, compiling this data manually is one of the most resource-intensive compliance exercises.

    Step-by-Step Automation Workflow

    1

    Abstract all lease terms required for ASC 842/IFRS 16 calculations: base rent, escalation schedules, option terms and exercise likelihood, variable payment provisions, residual value guarantees.

    2

    Generate structured output compatible with lease accounting software (LeaseQuery, CoStar, Visual Lease).

    3

    Flag provisions requiring management judgment: reasonably certain renewal assessments, variable lease payment estimates.

    4

    Produce a lease data extract in the standard import format for your accounting platform.

    5

    Update abstracts as lease modifications occur to maintain ongoing compliance.

    Time Saved
    60-75% reduction in data gathering for initial ASC 842 adoption
    Cost Impact
    Reduced audit preparation costs, elimination of restatement risk from incomplete or inaccurate lease data, and lower reliance on external consultants for compliance data gathering

    How to Automate ASC 842 Lease Accounting Compliance

    Frequently Asked Questions

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