FASB issues new lease accounting standards - ASC 842, or Topic 842.It governs how private and public entities record the financial impact of their lease agreements. According to ASC 842, leases are contracts granting control of identifiable assets for a fixed period in exchange for payment. Now, all public and private organizations need to report under US GAAP to record their leases on the balance sheet. This will increase the transparency into liabilities resulting from leasing agreements and reduce off-balance sheet activities.