X
X

Find Your Specialist

X

Contact Us

    Practice Leaders

    Lease Accounting (ASC 842)

    Making the transition

    Corporate accounting has rarely seen a “perfect storm” like the one we face this year. In addition to tax reform and the changes to revenue recognition, the FASB’s change to lease accounting standards (ASU 2016-02, Leases (Topic 842)) will have an impact on balance sheets starting as soon as January 2019.

    Under the new standard, companies must record an asset and a liability on the balance sheet for nearly all leases. Office space, equipment, automobiles and other items that are leased will now be reflected on the balance sheet. This marks the start of a new era in accounting, causing lenders and other users of financial statements to adapt to a redefined set of liabilities.

    Understanding the impact on your company
    Assessing the impact of the ASC 842 new standard for accounting for leases may be a somewhat daunting task for companies with hundreds (or even thousands) of leases. The new standard applies to embedded leases, which adds complexity to the transition. Many contracts that may not be considered a lease contain embedded lease arrangements. Assembling a schedule of leases and assessing them may require special software to even begin understanding the accounting implications.

    Getting started

    The Accounting Advisory team at Frazier & Deeter is ready to help your company make the transition to the new lease accounting ASC 842 standard.

    Call us today to schedule a Lease Accounting Assessment Session with our technical accounting team.

    Podcast | Lease Accounting Update

    Sean Lager, Audit Partner at Frazier & Deeter and member of AICPA’s Technical Issues Committee explains the changes to lease accounting. He also describes how public and private companies are impacted by these changes.

    Practice Leaders

    Privacy Overview

    When you use or access the Site, we use cookies, device identifiers, and similar technologies such as pixels, web beacons, and local storage to collect information about how you use the Site. We process the information collected through such technologies, which may include Personal Information, to help operate certain features of the Site (e.g., to prevent online poll participants from voting more than once), to enhance your experience through personalization, and to help us better understand the features of the Site that you and other users are most interested in.

    You can enable or disable our use of cookies per category.
    Always Enabled