Find out how the New Lease Accounting Standards will Impact Your Business
As of January 1, 2020, the new lease accounting standards for private companies (ASC 842) will become effective – marking one of the biggest changes to these standards in over four decades.
A few things to keep in mind are that companies most significantly impacted will be those that have historically entered into operating leases, because they will now be required to recognize right-of-use (ROU) assets and lease liabilities on their balance sheets, with few exceptions. While your net equity will not significantly change, this will cause total assets and liabilities to increase, and will have a substantial impact on several of your financial statements.
Although the deadline may still seem a ways off, now is the time to start thinking about things like securing copies of all your operating leases and determining if there is any information that should be tracked now that will be helpful in making judgments and estimates down the line.
During our complimentary webinar, we will be exploring:
- What to do now to be ready for the ASC 842 effective date,
- Lessons learned from public companies and early adopters,
- A detailed example of ASC 842 disclosure requirements,
- Transition accounting options,
- Potential implications from a tax standpoint,
- Pros and cons of electing practical expedients,
- And more!
Listen as we walk you through the new standards and help you gain a better understanding of how they will impact your financial reporting systems and processes going forward.