New Lease Accounting Standard Handbook

How to Comply with the FASB ASC 842 Lease Accounting Changes While Also Driving Savings

new lease accounting standards handbook cover

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Get the ASC 842 Handbook

Download Handbook to Learn:

  • Summary of the new FASB ASC 842 rules
  • SEC Reporting Impacts
  • The Data and Documents You’ll Need to Collect
  • Required Lease Accounting Software Changes
  • Who to Put on Your Project Team
  • Real World Accounting Examples

Overview of ASC 842

The first effective dates for the new US GAAP lease accounting standard, ASC 842, were in January 2019. The standard requires that all leases, both operating and finance, are moved on-balance sheet unless the lease term is less than 12 months. The on-balance sheet requirement of the new standard is creating a huge implementation challenge for many companies. The challenge is exacerbated for companies with large equipment leasing portfolios because equipment leasing programs are typically decentralized, making it difficult to track down the data needed to comply with the new standards.

To comply with the new standard companies must:

  • Learn the technical accounting and make policy judgements
  • Collect lease accounting data and supporting documents
  • Implement lease accounting and administration software
Lease Accelerator Solution by role for Shared Services

To maintain compliance, companies must:

  • Develop policies and controls to ensure the company stays in compliance on day 2 of the new standards and beyond
  • Establish automated processes to reduce unnecessary risks from manual workarounds, as well as costs
  • Train all end users on the lease accounting and management software

To learn more about ASC 842, the effects the standards will have on your business, how to staff and budget for the implementation project, and what to look for in lease accounting software, visit our lease accounting page.