Lease Accounting

Are you ready to implement the new ASC 842 lease accounting standard?

With new practical expedients, organizations should reevaluate their implementation plan. If you haven’t developed your plan, our lease accounting specialists can help.

With the deadline for private companies to implement ASC 842 for fiscal years ending after Dec. 15, 2021, it’s critical to be planning now.

Impact of the New Lease Standard

ASC 842 requires companies to account for lease obligations on their balance sheet with detailed footnote disclosures. To comply, companies need to evaluate:

Lease Accounting

May 25

Policy Elections

Companies must make policy decisions regarding how leases are classified, including estimates and the potential impairment of right-of-use assets. Many of these decisions will make implementation easier but may result in more significant assets and liabilities appearing on your balance sheet.

May 25

Processes & Controls

Companies must document operating leases that have previously been decentralized within business units and locations. This introduces a need for new systems, processes and controls.

May 25

Debt Covenants

Adding significant lease liabilities may affect your company’s compliance with debt covenants. You need to understand these potential implications and may have to begin conversations with lenders. Companies must make policy decisions regarding how leases are classified, including estimates and the potential impairment of right-of-use assets. Many of these decisions will make implementation easier but may result in more significant assets and liabilities appearing on your balance sheet.

Our Lease Accounting Services

We provide a scaled approach to meet our clients’ lease accounting needs, from consulting and guidance to fully outsourced lease accounting implementation and administration–and everything in between.

Assessment, Planning & Support Services

We assist you in developing an effective implementation plan, including practical expedients, to meet new requirements now and in the future.

Financial Reporting

We help your team optimize the time-consuming and complex work needed to gather and analyze the lease data required for effective financial reporting.

Software Implementation

Our consultants help streamline, simplify and automate compliance by implementing a lease accounting solution for adoption and ongoing administration and reporting.