FASB ASC 842 Implementation
Financial Accounting Standard Board (FASB) ASC 842 is effective for non-public business entities for fiscal years beginning after December 15, 2021 (i.e., will be effective for calendar-year-end entities on January 1, 2022.)
The new lease standard implementation requires companies to include on their balance sheet more lease agreements than ever before. The challenges for many private companies is historically leases have not been kept in a central location, and embedded leases exist within all sorts of other contracts. For large, midsized, and smaller private companies alike, implementation can require significant investment, attention, and senior management leadership. New or upgraded technology may be necessary. Extensive abstraction of existing lease agreements is required to capture specific data at new levels of detail.
Many private companies are simply unsure as to where to get started. At Pemmasani LLC, ou ASC 842 experts can assist you with the following:
A model implementation project plan, including dates and responsibilities, with actionable next steps
Preliminary risk assessment document of the company’s lease portfolio
Assist in selecting the lease accounting software that is right for you
Accounting policy and transition election white papers preparation
Designing of internal controls – Day 1 and Day 2 of adoption
Embedded lease analysis and scenario calculations to demonstrate potential impacts of ASC 842
Drafting of footnote disclosures for leases