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    Practice Leaders

    Lease Accounting (ASC 842)

    Making the Shift to 842

    On February 25, 2016, FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). 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 can 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.

    Lease Accounting Insights

    Cover-Image-4.6.21-Accounting-Update

    Accounting Standards Update

    Join Frazier & Deeter’s National Professional Practice Partner Mike Cheng as he discusses what’s new with the FASB and how it could affect private companies. Learn about new standards that may have a significant impact on private companies, and obtain…

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    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

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