What it is
ASC 842 asks lessees and lessors for information that lets users assess the amount, timing and uncertainty of cash flows from leases. The note is long: policies, qualitative description, a table of lease cost, supplemental cash flow and noncash items, weighted-average term and rate, and a five-year maturity analysis reconciled to the balance sheet.
This checklist is deeper than the short-form leases and revenue checklist. It covers lessee and lessor disclosures, private company elections (risk-free rate, combining components) and common-control lease items.
When to use it
- When reviewing the lease note of an audited private company.
- When the entity is both lessee and lessor.
- To check the maturity analysis ties to the lease liability.
What’s inside
- Policies and elections
- Lessee qualitative and quantitative disclosures
- Lessor disclosures
- Subleases, commitments and reassessments
Standard cited
This template follows ASC 842. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Can a private company use the risk-free rate?
Yes. A lessee that is not a public business entity may elect a risk-free rate for a class of underlying assets and must disclose the election and the classes it applies to.
Does the maturity analysis include more than five years?
It shows each of the first five years and a total of the remaining years, then a reconciliation of the undiscounted payments to the lease liability on the balance sheet.
Is this checklist complete?
No. It is a prompt list paraphrased from the standard, not a substitute for the Codification or a full commercial disclosure checklist. Check each item against the current ASC text and any ASUs issued since the date you last checked, and add industry-specific requirements.
Related templates
- Disclosure Checklist: Leases (ASC 842) and Revenue (ASC 606), Short Form
- GAAP Disclosure Checklist (Private Company, Short Form)
- Month-End Close Checklist (Excel)
Last updated 11/05/2026. All free templates.