Accounting changes triggered by the new FASB ASC 842 rule on lease liabilities and assets pose a potential risk to company SEC filings. Using our CompanyIQ™ platform, MyLoGIQ has analyzed SEC filings over the past six months to understand how companies are reacting to this new accounting rule. 

As expected, the most common disclosure location in SEC filings was in the Summary of Significant Accounting Policies section of Footnotes to Financials. For companies that will have a material impact from ASC 842, our study highlighted a best practice company that disclosed the impact in both the MD&A section as well as the Footnotes to Financials section with language that was consistent across both sections.

The top two industries affected by ASC 842 are manufacturing and finance based on our study of the 10-Qs and 10-Ks of the nearly 600 companies that filed from October 1, 2017 to March 20, 2018.