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AMTdirect Blog

AMTdirect Blog

The Bright Side of Adopting the New Lease Accounting Standards

Posted on 1/13/20 7:00 AM by Haley Martin in FASB, in Lease Accounting, in Compliance

Compliance under FASB ASC 842 is not all gloom and doom.

Although, if you’re in the throes of implementing the new lease accounting standards, it can feel like a perpetual dark cloud hanging over you with no hope of ever seeing sunny skies again.

While it’s true that preparing for compliance--the monumental tasks of gathering leases, analyzing them, creating policies, evaluating lease accounting software providers, training staff, abstracting and migrating data and then testing—is challenging, the new lease accounting changes present a golden opportunity for strategically optimizing your finance and lease accounting practices.

And that’s best accomplished through the tool of automation.

Why now?

Despite the deferred deadline, compliance is not a choice. Any business with even one lease over 12 months in duration must report under the new requirements. So, if you’ve ever considered an automated solution for either lease management or lease accounting, there’s no better time to dive in.

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FASB ASC 842: Countdown To Compliance

Posted on 1/6/20 7:00 AM by Taft Tucker in FASB, in Lease Accounting, in Compliance

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.

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