69% of the auditors said that their clients have raised the issue of potentially violating bank loan covenants
Using practical expedients, determining the lease term, assessing your discount rate, lease renewals and previously capitalized balances
MILWAUKEE, December 19, 2018 – John Hepp, retired Grant Thornton partner, former FASB project manager and current accounting faculty member at University of Illinois at Urbana-Champaign, discusses 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, in a new LeaseCrunch® blog posting. Topics covered:
Banks are bracing for the impact — on two fronts — of a new federal rule that will change how companies account for the cost of leasing everything from equipment to automobiles to space in office buildings or shopping centers.
Read about what our very own CEO, Ane Ohm, said about the change.
MILWAUKEE, November 2, 2018 – In a survey of auditors at 77 US CPA firms conducted by LeaseCrunch®, 58% believe that the new recognition of a lease obligation will adversely affect loan covenants for their clients.
The new lease accounting standard that takes effect for public companies next year poses obstacles for the audit firms that have begun implementing it for their clients.
A group of former CPA firm auditors has teamed up to develop LeaseCrunch, lease accounting software that they’re selling through CPA firms to help clients deal with the new FASB standard.