By LeaseCrunch® on Feb 18, 2021 3:26:24 PM
This article originally appeared in CPA Now.
With 2021 here, CPA firms must begin to prepare for something we’ve known was coming for some time: implementation of the new lease accounting standard for nonpublic companies.
While most clients won't start adopting the new lease standard until late 2021 or into 2022 (or even early 2023), they should talk to their banks early about the structure of their debt covenants and the potential impact of implementation. They should also start tracking their leases and centralizing lease documents, which will be important for implementation. Identifying embedded leases now will also make this process much easier.