Lease Accounting Services
Now that the new lease accounting requirements are in place, Insero’s team of experts can help you improve efficiency and processes while staying in compliance with our Outsource Lease Accounting Services..
ASC 842, the new lease accounting standard, is effective for private companies with years beginning after December 15, 2021 (calendar year 2022). GASB 87 is effective for government agencies for years beginning after June 15, 2021. All leases will now be on your balance sheet which could impact financial metrics and debt covenants. This can also result in a more complex monthly accounting process.
Other implications of ASC 842 include:
Modification and reassessment guidance is more complex and lease valuation can be impacted by leasehold improvements
Contracts not traditionally thought of as a lease are considered a lease under ASC 842
Impacts long lived asset impairment reviews
Accounting requirements can exceed the capabilities of Excel, requiring new software
Have a question or want to discuss your needs? Get in touch – we’re here to help.