ASC 842 Lease Accounting Compliance Handbook
For private companies that need to get ahead of the FASB ASC 842 lease accounting deadlines.
Download the ASC 842 handbook to learn:
- How to get started now
- Summary of the new FASB ASC 842 rules
- SEC reporting impacts
- Data and documents you’ll need to collect
- Required lease accounting software changes
- Real world accounting examples
Start the process today.
Why start now
Even though your deadline for complying moved out, it is time for private organizations to get ready for ASC 842 compliance. Your leasing portfolio is probably more complex than you realize so having this extra time can really pay off as you start to automate the process.
The US GAAP lease accounting standard, ASC 842, 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, companies must:
NuStar Energy Lease Accounting
Compliance – NuStar successfully transitioned to ASC 842 on January 1, 2019. The accounting team was able to perform the monthly close on time and file its first interim statement (SEC Form 10-Q) in April 2019.
Visibility – With all of the company’s leasing data centralized in a single repository, NuStar’s leasing program is now quantifiable, reportable, and manageable.
Cost Savings – The accounting team worked with the procurement organization to identify the assets so that more cost-effective contracting mechanisms could be negotiated.