Lease Asset
Category
GASB 87/96
A lease asset is the balance sheet item representing a lessee's right to use a leased asset over the lease term. The specific terminology varies by standard: ASC 842 uses 'right-of-use asset,' IFRS 16 uses 'right-of-use asset,' and GASB 87 uses 'right-to-use lease asset' (classified as intangible). All represent the same economic concept: the capitalized value of the lessee's usage rights.
Why it matters
Understanding the lease asset concept across standards is essential for organizations reporting under multiple frameworks. While the economic substance is the same, the measurement, presentation, and subsequent treatment differ. ASC 842 operating lease ROU assets use a plug calculation (liability minus prepayments), while GASB 87 right-to-use assets are measured independently. These differences affect balance sheet amounts and period-over-period comparisons.
How Arvexi handles this
Arvexi calculates lease assets under all supported standards (ASC 842, IFRS 16, GASB 87, and GASB 96) using the measurement approach specific to each. The platform presents each asset with the correct terminology and classification for the applicable standard, ensuring financial statement accuracy and audit readiness.