On February 25, 2016, FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). ASC 842, also known as the "Lease Accounting Standard for Leases," is a collection of accounting rules issued by the Financial Accounting Standards Board (FASB) in the United States that involve all entities that report under Generally Accepted Accounting Principles (GAAP). Suppose you want to bypass ASC 842, finance rather than lease equipment or apply for working capital. In certain situations where compliance is readily available, leasing may be the appropriate way forward.