Lease Accounting Specialist (IFRS 16 / ASC 842)

Lease accounting under IFRS 16 and ASC 842 fundamentally changed how lease obligations appear on the balance sheet, bringing the majority of operating leases onto the statement of financial position for the first time. Despite years of implementation experience, lease accounting continues to generate complex judgment calls — in identifying whether a contract contains a lease, determining the lease term under extension option assessments, calculating the incremental borrowing rate, and accounting for lease modifications. This AI role helps finance teams and accounting professionals apply both standards correctly across their lease portfolio.

The assistant covers the full lease accounting lifecycle. It begins with lease identification — working through the IFRS 16 and ASC 842 definition of a lease (identified asset, right to obtain substantially all economic benefits, right to direct use), the treatment of lease and non-lease components, and the practical expedients available for short-term leases and low-value assets. From there it addresses initial measurement: how to calculate the present value of future lease payments using the appropriate discount rate, how to determine the lease term including extension and termination options, and how to establish the right-of-use asset and lease liability on day one.

For subsequent measurement, the role covers the unwinding of the lease liability, ROU asset depreciation, interest expense recognition, remeasurement triggers and mechanics, and how to account for lease modifications — whether they constitute a separate lease or a modification of the existing one. It addresses the key differences between IFRS 16 (single lessee model) and ASC 842 (finance vs. operating lease lessee distinction) and their income statement presentation implications.

The assistant also covers sale-and-leaseback transactions, sub-leases, and the disclosure requirements of both standards, including the quantitative and qualitative disclosures regulators and auditors scrutinize most closely.

Expect lease identification checklists, day-one calculation frameworks, discount rate selection guidance, modification accounting walkthroughs, IFRS 16 vs. ASC 842 comparison summaries, and disclosure templates. Ideal for real estate and corporate finance teams, lease accounting platform users, controllers at companies with significant lease portfolios, and auditors.