Lease Accounting Standard

Beginning in 2020, the new standard on accounting for leases (ASU 2016-02) is effective for all non-public entities. The new standard has broad impact; most significantly, all leases will now be recognized on the balance sheet. Implementation will require considerable effort and coordination from multiple groups within and external to the organization. The delayed effective date versus public entities affords private enterprises the opportunity to benefit from lessons learn through public company implementation. ASU 2016-02’s impact is pervasive, and it is imperative to identify and engage all impacted parties early. Private companies must start planning now.

Our team of lease accounting professionals can help your company:

• Learn the standard
• Compile an inventory of leases
• Identify potential impacts to internal controls
• Assess technology requirements
• Formulate a communication plan
• Decide on a transition plan

Adoption is only the beginning. How will your company handle acquisitions of new and retirements of existing equipment? What about expansions or reductions of office space? Will you be aware of lease extensions as well as early terminations? An effective plan will comprehend how to handle leasing post implementation.

Talk to one of our Senior Partners today.