13 Oct Lease Accounting: NOW It’s Time!
ASC 842, the new lease accounting standard, is now effective for private companies, not-for-profit organizations, and certain small public companies for annual reporting periods beginning after December 15, 2021 and interim periods within those fiscal years beginning after December 15, 2022.
TIME IS RUNNING OUT! If you haven’t already done so, now is the time to shift into high gear. Implementing the new FASB ASC 842 lease accounting standard can have wide-reaching impacts across an organization.
Being over prepared and having the right support will ensure a smooth transition and maximize the benefits from the implementation. Our experienced, game-changing consultants have actively participated in numerous public and private company implementations.
Don’t delay any further. Learn the lessons from our public company clients including that these activities can take more time than originally planned:
- Identification of contracts and lease evaluation – One client thought they had 300-350 leases but ended up with over 800 – don’t get caught late with a miscount and no time to correct
- Lease data abstraction and migration – This can be simple or complex; many clients did not consider embedded leases in their contracts- we help look under the covers
- Determining which lease accounting tool, if any, you want to purchase and implement – Excel may seem like the answer, however is it sustainable? We have the experience to help you benchmark which tools will be most effective for your business
- Internal process changes – An important step in how you will adopt your lease evaluation going forward includes contract review and all the steps to your balance sheet – our technical consultants are experienced in both documentation and change management as you adopt this new process