ASC 842 lease remeasurement upon emergence from bankruptcy

ASC 842 lease remeasurement upon emergence from bankruptcy

Stout performed the remeasurement of a full lease portfolio upon the Company's emergence from bankruptcy in the Real Estate industry.

Work performed during this engagement included the following:

  • Reviewing and evaluating contracts
  • Extracting all key lease terms
  • Calculating values of right-of-use assets and lease liabilities
  • Providing journal entries required to record the right-of-use assets and lease liabilities (at emergence date and for the remainder of the first fiscal year)
  • Drafting audit-ready documentation to support remeasurement policies and practices.

Stout's Complex Securities team also assisted with incremental borrowing rate (IBR) calculations (cross-collaboration effort).