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SPONSORED REPORT

Implementing lease

accounting: Down to the wire

espite two deferrals of a daunting new accounting CPAs are well positioned to provide the information and
standard, many private companies may not yet have truly assistance that nonattest clients need, either with final
Dgotten their arms around FASB’s ASC Topic 842, Leases. implementation or ongoing compliance. In some cases,
companies may be seeking alternate reporting options.
Topic 842 requires companies to make significant changes CPAs can also work with clients to ensure they benefit from
in the way they report operating leases. FASB’s intention was the standard. Getting new systems up and running will be
to provide greater transparency surrounding an organization’s a priority for some companies, which may need advice on
lease obligations. software implementation.
Under Topic 842, organizations are required to recognize Visit this page to register for access to the JofA’s
both capital and operating leases on their balance sheets if sponsored report on lease accounting, which covers the
they cover a period of more than 12 months. One of the initial standard and the internal controls it requires for accuracy
challenges for organizations may simply be finding all of the and completeness of information; the effects on tenants
many leases and contracts subject to the new standard. That and other lessees, on lessors, and on emerging growth
includes “embedded” leases, which may include outsourcing companies; and the impact the pandemic has had on
IMAGE BY HAPABAPA/ISTOCK contracts, among other transactions. Sponsored by
implementation and on lease strategies overall.
arrangements, bundled goods, joint operations, and service

Visual Lease • LeaseAccelerator • EZLease • Lease Query