ASC 842: Supplemental Balance Sheet Disclosure (Part 2)

In Part 1 we built the ROU asset and lease liability portions of the supplemental balance sheet disclosure. In this video, we complete it — adding the weighted-average remaining lease term and weighted-average discount rate required by ASC 842. We cover: Calculating the weighted-average remaining lease term for operating leases and finance leases separately — weighting by the undiscounted future payments of each lease Calculating the weighted-average discount rate for each lease type — weighting by the remaining lease liability balance of each lease Adding both weighted-average figures to the disclosure table and confirming the calculations are correct How these metrics help financial statement users assess the duration and cost of the company's lease portfolio at a glance Completing the full supplemental balance sheet disclosure and reviewing the final output By the end of this video, you'll understand: How to calculate and present the weighted-average remaining lease term and weighted-average discount rate How the weighting works and why different approaches produce different results How to present the complete supplemental balance sheet disclosure in a way that meets ASC 842 requirements In the next episode, we'll build the maturity analysis disclosure. 👉 Visit us at https://intellicasts.com to explore more resources and courses.