The big news on the street is the delay by the FASB of the ASC 842 adoption date.
The governing body stated this deadline change will give companies more time to deal with the complexities of the transition. It will also give the FASB a chance to find out more about what went wrong for public companies. This includes digging into where there was unnecessary cost and where the standards can be improved.
A cheer went up for this extended deadline from companies just starting to look into lease accounting compliance and those in the beginning stages of implementation. After all, the delay gives laggers more time to create an adoption plan, staff adequately, and select lease accounting software.
But it’s also created a huge blind spot when it comes to lease accounting technology.
It’s a problem that’s not talked about enough in the industry, but for those companies who wait to start implementation, the writing is on the wall.