Written by Ane Ohm, Co-Founder and CEO, LeaseCrunch®
With the likely delayed implementation of the new lease accounting standard for privately-held companies, many organizations have shifted their focus away from the new lease standard to other priorities. However, while the delay allows us all a bit of relief against the tighter original timeline, the new standard should still be a focus for CPA firms and their privately-held clients.
In fact, I highly recommend using the extra time to make the implementation process easier, with the ability to transition to the new standard methodically and without rushing. In this article, I’ll share the top areas CPA firms and their clients can focus on right away to best prepare to implement ASC 842 next year.
Make sure ASC 840 is fully implemented
Even though many leases weren’t required on the balance sheet under ASC 840, they should have been captured in the footnote. However, I’m hearing that many organizations hadn’t previously included all leases in their disclosures, including embedded leases or non-real estate leases.