Folio generates audit-ready technical accounting memos with real FASB citations — grounded in your company's approved policy elections, not assumptions. Built for Controllers who can't afford to get this wrong.
ASC 842-10-25-2
None of the five criteria under ASC 842-10-25-2 are met. Title does not transfer; no purchase option exists; the 60-month term represents 16.7% of the 30-year economic life of office space (below the Company's 75% major part threshold)...
The lease is classified as an operating lease under ASC 842-20-25-1. IBR of 5.75% applied per Company Lease Policy Memo dated Feb 10, 2026.
No more blank Word docs. Set your policy once, run individual leases through structured intake, review the draft, export to auditors.
Complete the Policy Profile once: IBR methodology, classification thresholds, practical expedients, renewal framework. Generate your standing ASC 842 policy memo. Approve it. Done — every lease memo references it from here on.
One-time setupUpload the lease agreement or amendment. Answer 15–20 guided questions. Folio extracts key terms and pre-populates what it can. Use the Ask Folio chat to clarify any guidance questions while you work.
Per transactionThe RAG pipeline retrieves actual FASB codification text and constructs a properly structured memo — Background, Guidance, Analysis, Conclusion — with real paragraph citations anchored to your approved policy elections.
~20 minutesYour team reviews with inline citation verification — click any ASC reference to see the exact codification text used. Approve. Export a formatted .docx. Share a read-only auditor portal. Done.
Audit-readyMost memo tools re-establish company policy from scratch on every transaction producing inconsistency auditors notice. Folio separates policy from transaction analysis.
Built specifically for technical accounting memos — not adapted from a generic document tool.
Guided intake form collects all company-level elections — IBR rate table, thresholds, practical expedients, renewal framework. Generates a standing policy memo approved once and referenced forever.
Phase 1 · AvailableStructured intake drives a RAG pipeline over the FASB codification. Outputs a properly structured memo with real paragraph citations, management judgment blocks, journal entries, and disclosure implications.
Phase 1 · AvailableEvery ASC citation in the memo is clickable. Click to see the exact codification paragraph text that grounded the conclusion. If a citation isn't in the knowledge base, it's flagged — not silently passed through.
Phase 1 · AvailableContextual AI chat loaded with the specific ASC paragraph you're viewing. Ask questions while filling out intake — "does this structure qualify as a purchase option?" — and get answers grounded in the codification, not general LLM memory.
Phase 1 · AvailableEvery memo generated or uploaded lives in a searchable, versioned library. Find prior conclusions by describing the transaction — not by guessing the filename buried in SharePoint.
Phase 2 · Month 7Full status lifecycle: Draft → In Review → Approved → Superseded. Timestamped approvals. Auditor read-only portal. One-click PBC export. The documentation package auditors want, ready before they ask.
Phase 3 · Month 13The difference between a memo that passes audit and one that doesn't often comes down to whether the citations are real. Folio makes that verifiable in one click.
The lease term is 84 months. The economic life of office space is 30 years (360 months) per Company policy. The ratio of lease term to economic life is 23.3%, which is below the Company's "major part" threshold of 75% established in the ASC 842-10-25-2(c) analysis. Criterion (c) is therefore not met.
Click any citation in the memo → see the exact codification text used
"We spend two weeks before every audit just finding and organizing prior memos. Half of them are in someone's personal drive."
"ASC 842 took my team over 40 hours last quarter. I have four leases. That math doesn't work."
"The bottleneck isn't knowing the guidance. It's the time it takes to write it all down in a form auditors will accept."
Annual contracts. No setup fees. Generation Tier priced below the typical Controller approval threshold.
Policy profile, memo generation, citation flyout, Ask Folio chat, and Word export. Everything to get through this audit and the next one.
The full system of record. Designed for teams with audit pressure, complex structures, and multiple concurrent technical accounting questions.
We're working with 3–5 Controllers and Accounting Managers who will shape the product in exchange for early pricing and direct access to the founder. If your team produces technical accounting memos and wants to be first, reach out.