The Advantages of Using Software to Implement the New Lease Standard

May 29, 2019 at 9:42 AM / by LeaseCrunch® posted in Lease Components, New Lease Standard, Technology


Implementing the new lease standard is complex, particularly for organizations with many leases. Beyond the complexity and time-consuming nature of implementing the new standard, setting it up manually with spreadsheets is also extremely risky. This blog will examine the advantages of using software instead.

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Ask the Expert: John Hepp Discusses Related Party Leases

May 28, 2019 at 6:45 AM / by LeaseCrunch® posted in Lease Components, New Lease Standard, Technology

Important note: This is a judgment-based standard, which means there are few hard-and-fast rules and the treatment of your leases will depend on your unique situation. It's important that you always double-check decisions with an accounting professional who knows your circumstances. This blog should not be considered, or take the place of, professional advice or services.


This month, we’re bringing back industry expert John Hepp to discuss related party leases. John is a retired partner from Grant Thornton and a former FASB project manager. He holds a PhD from the University of Wisconsin-Madison and is currently on the faculty at the University of Illinois at Urbana-Champaign.


With John’s help, this blog will examine leases between related parties, specifically the lease term that should be booked.

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The New Lease Standard: Defining and Identifying Embedded Leases

May 7, 2019 at 8:00 AM / by LeaseCrunch® posted in Lease Components, New Lease Standard


One of the trickier aspects of the new lease standard is the concept of embedded leases. Like many components of the new standard, identifying an embedded lease takes human judgment—and there are few shortcuts to simplify the process.

This article examines the basics of embedded leases and how to identify them, so you can help your clients with this complex aspect of implementing the new lease standard.

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Meet Your Updated General Ledger Accounts Under the New Lease Standard

April 30, 2019 at 9:00 AM / by LeaseCrunch® posted in Lease Components, New Lease Standard

The new lease standard requires you to account for leases differently on your financial statements, which of course includes your general ledger. Learn what’s new in this blog, including a few intricacies and potential surprises to watch out for as you help clients implement the standard.

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ASC 842: Transitioning Leases and Why Equity Likely Isn’t Affected

March 26, 2019 at 10:17 AM / by LeaseCrunch® posted in Lease Components, New Lease Standard


When the changes in an accounting standard impact assets or liabilities, we are accustomed to the difference flowing through equity. The new lease standard, ASC 842, is different because equity is not typically impacted in the initial journal entries. It might seem strange to not use your trusty “Cumulative Effect of a Change in Accounting Principle” account when implementing a new standard, yet it’s true - and important to know to ensure that your lease assets and liabilities are properly recorded. So how does it work? Read on to learn more.

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What We Want to See Happen With the New Lease Standard in 2019

January 15, 2019 at 1:00 PM / by Ane Ohm posted in FASB, New Lease Standard, CPA Firms, Technology


As we kick off 2019, everyone posts predictions for the coming year and I enjoy reading those as much as the next person. With
the new lease standard, it seems that predictions are more along the lines of, “the sky is falling!” There are only so many times we can hear that we’re in dire straits, so I thought I’d shake it up a bit.

 

Understanding the reality and the timeline of the new lease standard, what do I want to happen in 2019? Read on for my wishlist.

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When the New Lease Standard Goes into Effect and Other Key Dates

January 1, 2019 at 9:00 AM / by LeaseCrunch® posted in New Lease Standard, Lease Payments, IFRS

If your organization leases just about anything and follows Generally Accepted Accounting Principles (GAAP) in the United States or International Financial Reporting Standards (IFRS) elsewhere, then the new lease standard affects you.

If you’re affected, then you need to know certain key dates, starting with the date by when you have to adopt the new standard.

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Ask the Expert: John Hepp Discusses the New Lease Standard

December 17, 2018 at 1:21 PM / by Ane Ohm posted in FASB, New Lease Standard, CPA Firms, IFRS


Important note:
This is a judgment-based standard, which means there are few hard-and-fast rules and the treatment of your leases will depend on your unique situation. It's important that you always double-check decisions with an accounting professional who knows your circumstances. This blog should not be considered or take the place of professional advice or services.

We’re excited this month to share insights from our recent conversation with industry expert John Hepp. John is a retired partner from Grant Thornton and a former FASB project manager. He holds a PhD from the University of Wisconsin-Madison and is currently on the faculty at University of Illinois at Urbana-Champaign.

John discussed several nuances of the new lease accounting standard, from practical expedients (“the spoonful of sugar to help the medicine go down”) to discount rates and much more.

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CPA Playbook for Talking to Clients About the New Lease Standard

December 3, 2018 at 8:00 AM / by Joel Hess posted in New Lease Standard, CPA Firms

Have you spoken with your clients about the new lease standard? How many clients have begun preparing for implementation? Since the new lease standard doesn’t go into effect for another year for non-public organizations and most are still dealing with the new revenue recognition standard, we’re hearing that many haven’t put much effort into preparing for the new lease standard.

Given the time-consuming nature of implementing the new lease standard, it’s essential that any client with leases considers developing an implementation plan sooner rather than later. Because your firm will be more frequently interacting with clients in the next few months, it’s a perfect time to bring the new lease standard into the conversation.

In this blog, we’ll offer suggestions for having these discussions in conjunction with your assurance work to help you best prepare your clients for this significant change.

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5 Mistakes to Avoid When Implementing the New Lease Standard

October 17, 2018 at 10:00 AM / by Ane Ohm


The new lease standard is more complicated than companies expect and therefore often underestimated. Because of this, we are seeing some unfortunate trends as the new lease standard is implemented. Read on for the top five mistakes we’re seeing to avoid these challenges for your organization.

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