Lease Accounting Services

Are you ready for lease accounting changes? There isn’t much time left. Don’t wait for year end!

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.

This is not just a disclosure requirement…

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

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Have a question or want to discuss your needs? Get in touch – we’re here to help.

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