ASC 842, IFRS 16, GASB 87

The New Lease Accounting Standards

Although, these new leasing standards were well publicized in accounting circles for almost a decade, few organizations were prepared for the change.  Companies both large and small have struggled with adoption, investing far more time and budget into implementation projects than anticipated.  Even large-cap, publicly traded companies, whose advanced financial systems can produce earnings reports just days after quarter-end, are struggling to automate their record-to-report processes. In 2019, the challenges became so overwhelming that the Financial Accounting Standards Board (FASB) extended the deadlines for privately held companies to allow more time to prepare.

Why is Lease Accounting Hard?

The Biggest Accounting Change Ever Infographic