Private companies - the FASB is lookin’ at you!
With the new FASB standards in place for public companies as of earlier this year, the FASB is turning its attention to private companies, whose implementation deadline starts in January 2020—less than eight months away.
Surveys show private companies are reporting an even lower state of readiness than public companies were at this time last year. Almost 40 percent of private companies are behind schedule on implementing the new lease accounting standards.
Some haven’t even started getting ready yet, even though the implementation deadline for FASB ASC 842 compliance is quickly approaching.
Even under the best of circumstances—your team is on the same page, you know where all your leases are, and you have invested in the best software for your needs—FASB 842 compliance isn’t easy.
Nearly 55% of companies who have already started this process are finding FASB 842 compliance more complex than originally anticipated.
Here are 7 questions you may be asking, and the practical answers for tackling the new lease accounting standards.