Significant changes to lease accounting standards are set to take place with the new lease standard issued by the Financial Accounting Standards Board (FASB): ASC 842.
Replacing ASC 840, the new standard aims to enhance lease reporting in order to more accurately depict the impact a company’s leasing activity has on its financial reporting. Though the new standard has been delayed multiple times, they are now officially in effect, as stated below.
- Public Business Entities: December 31, 2018
- Private Business Entities: For fiscal years beginning after December 15, 2021. Earlier application is permitted.
These major changes will require proper planning and preparation to ensure they are adopted and implemented successfully. Through our partnership with LeaseCrunch, Thompson Greenspon can assist you with the adoption of ASC 842 and ensuring a smooth transition.