The new lease standard, ASC 842, Leases, is quickly approaching and many organizations and governmental agencies have not yet had an opportunity to assess the impact. This standard fundamentally changes the accounting guidance governing leases. Companies must now account for substantially all leases, including equipment and real estate, and most leases will now be capitalized on the balance sheet.
While public companies are required to implement the lease standard in 2019, these standards will be in effect for private companies, not-for-profit organizations, and governmental organizations in 2020. Although your accounting team is busy with day-to-day issues and keeping current with company operations and activity, the new lease standard requires additional time and resources to implement. You may need a supplemental resource to assist your accounting/finance department, or your organization may benefit most from fully-outsourced services so that your accounting team can simply review the results and move forward.
The following article from LeaseQuery covers key changes and challenges, potential impacts of compliance and failing to comply, and the tools your organization may need in order to implement the new lease accounting standard.
P&N’s diverse experience includes organizations with fewer than 20 leases to several hundred, or even thousand, leases. Our team can help you establish a clear path through the lease accounting implementation, providing training and/or project planning, taking inventory of your organization’s leases, assessing the potential impacts on future financial reporting, including the elections of practical expedients, and developing a lease policy. P&N professionals are available to offer guidance during and after implementation.
LeaseQuery helps accountants and other finance professionals comply with ASC 840, ASC 842, IAS 17, IFRS 16 and GASB 87 with its CPA-approved lease accounting software and implementation process. LeaseQuery accountants offer lease accounting support every step of the way, helping you achieve compliance and minimize disruption to your business.