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AMTdirect Insights Blog

AMTdirect Insights Blog

7 Costly FASB 842 Implementation Misconceptions

Posted on 10/3/18 9:02 AM by The Team at AMTdirect in FASB

Change, it is a-coming.

We’re talking about the looming deadline for public companies to make FASB ASC 842 changes. And private companies aren’t off the hook… they have just one short year to roll out their implementation.

Either way, you’ll be challenged with complexity and encounter roadblocks and unforeseen challenges when it comes to the accounting standards changes.

Truth is, the new FASB 842 requirements will force you to manage lease and accounting data in a much different fashion.

As we’ve worked with our clients to complete implementation, we’ve come across 7 misconceptions that could prove costly, if not managed appropriately.

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The 6 Fatal Points of FASB 842 Implementation Failure

Posted on 9/22/18 3:58 PM by The Team at AMTdirect in Lease Accounting

Complicated. Serious risk. Arduous.

These words fill online treatises from financial powerhouses advising about FASB 842 compliance.

The experts agree... the entire implementation process for the new lease accounting standard is most emphatically easier said than done.

It’s true.

We’ve worked with clients over the past year to get ready for the new rules. And there’s no doubt getting starting sooner rather than later - whether you have a January 1st or a 2020 deadline - is your best bet for success.

In fact, we’ve discovered 6 points of failure that - if not handled properly - can be fatal to the on-time delivery of a final solution.

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The Real FASB 842 Timeline Calculator, Gantt Chart & Project Plan

Posted on 8/14/18 5:47 PM by Amber Bigler Newman in FASB

The clock is running down.

If you're a public company - with 6 to 9 months to implement FASB ASC 842 before the January 1st deadline - you've got a lot of work to do... and not a lot of time to do it in.

And if you're a private company with a little over a year to implement the mandate... time's still not on your side.

One thing is for sure...

Very few people are ready. In fact, PwC's accounting survey tells the shocking story that only 1% of companies are ready. 34% are still early in the assessment phase. 83% of all companies are less than 50% complete with the project. And one-third are unsure or doubtful they will meet the effective date.

So basically, that means everyone's scrambling to meet the deadline.

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The Truth Behind FASB 842 Implementation No One's Talking About

Posted on 8/8/18 8:06 PM by Amber Bigler Newman in FASB, in Lease Accounting

It's no shocker...

You know what the FASB ASC 842 lease accounting standard is.

After all, it's been out in the wild for some time now. Comprehensive articles have been written about it by experts in the financial field. And public companies have to implement it by January 1.

So of course you know what's required. Right?

If you're like the majority of public and private companies in the United States, the nitty gritty of FASB 842 is a bit of a mystery. 

With that in mind, we're putting our expertise to good use by revealing the truth behind the accounting standards change no one's talking about.

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The Dirty Little Secret About the Simplified FASB 842 Implementation Requirements

Posted on 7/31/18 1:39 PM by Amber Bigler Newman in FASB

The FASB ASC 842 accounting standards changes bring virtually all leases out of the footnotes and into the bright shining light of financial statements.

What this means is a 360 degree shift from the way things have always been done.

Corporate balance sheets will now host trillions of dollars worth of new assets and liabilities. This will provide a practical expedient for lessors, as it gets rid of the headache of separating lease components from non-lease components in certain contracts.

And although there’s a lot of good coming out of the new standards … there’s also an ugly side to the changes that shouldn’t be ignored.

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3 Hidden Facts About FASB 842 Implementation Too Important to Ignore

Posted on 7/5/18 2:43 PM by Amber Bigler Newman in FASB

Lease data is the heart of FASB ASC 842 compliance.

The thing is, it’s proven tougher to get than most companies expected.

When it was first released, no one knew what to expect when it came to timeline or process for making FASB 842 happen.

But as time has shown, there are a lot of unexpected complications.

In fact, the new rule will require you to abstract as many as 55 data elements from leases in order to determine the lease status and meet compliance requirements. It’s a tall order that requires careful understanding of the updated accounting standard.

To help shed light on the topic, we’re revealing 3 hidden facts about FASB 842 implementation you might not know… but that are too important to ignore if you want to successfully execute the new accounting standards.

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