Private companies, not-for-profit organizations, and certain small public companies were granted additional time to implement the new ASC 842 lease accounting standard. Although a collective sigh of relief was heard, there is still a lot to get done and time is running short. If you haven’t already done so, now is the time to shift into high gear. If we learned anything from both the revenue recognition delay and the public company implementation of lease accounting, it’s that these projects take longer than you think.
The Clock Starts Now: While the FASB issued multiple extensions, it is anticipated that all entities will have started implementing for fiscal years starting after December 15, 2021 and internal periods within fiscal years beginning after December 15, 2022 (January 1 for calendar reporting periods).
Implementing the new FASB ASC 842 lease accounting standard can have wide-reaching impacts across an organization. Being uber prepared and having the right support will ensure a smooth transition and maximize the benefits from the implementation. Our experienced, game-changing consultants have actively participated in numerous public and private company implementations.
To learn more about Lease Accounting Standards, download our whitepaper.