ASC 842: Building the Maturity Analysis Disclosure

The maturity analysis is one of the most important disclosures under ASC 842 — it shows users the full schedule of future lease payments and reconciles them back to the lease liability on the balance sheet. In this video, we build the maturity analysis for Precision Industrial and walk through every line of the disclosure. We cover: What the maturity analysis requires: undiscounted future lease payments broken out by year for the next five years, with a total for years beyond five, presented separately for operating and finance leases Building the maturity schedule in the workbook: pulling the future payment stream for each lease and organizing it by fiscal year The reconciliation from undiscounted future payments to the lease liability: subtracting the discount (the difference between undiscounted and present value) to arrive at the balance sheet amount How prepaid lease payments, initial direct costs, and other ROU asset adjustments factor into the reconciliation — or why they don't appear in the liability reconciliation at all Reviewing the completed maturity table and confirming it reconciles to the carrying amount of the lease liabilities on the balance sheet By the end of this video, you'll understand: What the maturity analysis disclosure must show and how it's structured How to build the undiscounted payment schedule from the workbook How the reconciliation to the lease liability works — and why the discount is the only adjustment needed One more episode to go — the lease cost disclosure and series wrap-up. 👉 Visit us at https://intellicasts.com to explore more resources and courses.