FASB ASC 842 lease capitalization policy

With broader understanding and implementation of FASB Accounting Standards Codification (FASB ASC) 842, Leases, by private companies, questions are becoming more frequent about the use of a lease capitalization policy. At the April 21, 2022, Private Company Council (PCC) meeting, lease capitalization policies were cited by the FASB chair as something where private companies needed focus. However, a PCC preparer cautioned that a lease capitalization policy requires some substantiation and analysis as it lacks authoritative basis in the FASB