The Financial Accounting Standards Board (FASB) published the lease accounting standard ASC 842, to replace the lease accounting standard ASC 840. The purpose of ASC 842 is to increase disclosure and visibility into the leasing obligations of both public and private organizations.
Public and private companies have different effective dates for the new lease accounting standard. For public companies, the FASB standard was effective for reporting periods that began subsequent to December 15, 2018. For calendar year-end companies, this means the standard was adopted on January 1, 2019.
ASC 842 is effective for private companies and nonprofit organizations’ annual reporting periods beginning after December 15, 2021. This means many private companies and non-profit organizations are working through the lease accounting transition right now.
HOW KATZABOSCH CAN HELP The new lease accounting standard, ASC 842, requires organizations to think about the business impacts it will bring not only during implementation, but beyond. Connect with one of our professionals today to understand how to have a smooth implementation process and one that will work for your compliance matters. Additionally, utilize the resources on this page to reinforce your understanding on the provision and some of the best practices for implementation.
The new lease accounting standard, ASC 842, requires organizations to think about the business impacts it will bring not only during implementation, but beyond.
Connect with one of our professionals today to understand how to have a smooth implementation process and one that will work for your compliance matters. Additionally, utilize the resources on this page to reinforce your understanding on the provision and some of the best practices for implementation.
Use this free calculator to input your numbers to see how much time—and money—you lose by using spreadsheets to maintain and implement the new lease accounting standard.
Click Here To Use Calculator
Click on the image below to view our on-demand webinar that provides a comprehensive take on best practices and practical expedients for transitioning.
