You may have just breathed a huge sigh of relief.
The ball dropped at midnight ringing in 2020, giving private companies one more year to achieve FASB ASC 842 compliance.
To many, that sounds like adequate time to accomplish all the necessary steps to implement the new lease accounting standards, but several factors will crunch that one year into a time span barely sufficient to successfully meet the new deadline.
Fewer available vendors. With 52% of private companies admitting that the delay has pushed their timeline back, you’ll be one of thousands of businesses vying for services from a limited number of lease accounting specialists, software providers and auditors. Most of these experts have already been secured by the other 48%.
More complex than you think. Based on what public companies experienced during the implementation process, the adoption of FASB ASC 842 will be more complicated and time-consuming than you expect.
Added responsibilities. Even if you’ve budgeted for additional employees or a consultant, your staff will have to complete a myriad of additional tasks associated with implementation while maintaining their normal workload.