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AMTdirect Insights Blog

AMTdirect Insights Blog

Death by Financial Restatement: Don't Let FASB ASC 842 Doom You to Fail

Posted on 10/14/19 7:00 AM by Taft Tucker in FASB, in Lease Accounting, in GASB

The debate over the new accounting standards is heating up.

A slew of complaints have been popping up in the last quarter of 2019 including one senator who’s introducing a bill to require the FASB to study new petitions in the future.

Controversy or not, one thing remains clear: No matter your lease number and no matter your company size or type, compliance with the new lease accounting standards isn’t optional.

And it’s not going to be easy.

In fact, there’s been an eyebrow-raising number of financial restatements filed in the past year. And most of them are related to the complexity of the FASB, GASB and IASB standards.  

This raises a major red flag for private companies.

In fact, the stats and stories point to the fact that financial restatements caused by the new accounting standards could be a nightmare.

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Equipment Leasing and the New Accounting Standards: What Qualifies?

Posted on 7/29/19 9:00 AM by Taft Tucker in Lease Administration, in FASB, in Lease Accounting, in GASB

More than 80% of American companies lease equipment rather than purchasing it.

That’s a big number.

And the reason you should care about it is even more significant. When your compliance deadline rolls around, all of your equipment leases will have to be noted on your balance sheet.

In the past, this treatment was reserved for capital leases only.

But now the Financial Accounting Standards Board (FASB) and its sister governing boards have also decided operating leases - including equipment leases - should move out of the footnotes to join the party on the balance sheet.

But just what is an equipment lease according to the accounting governing boards?

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GASB 87 Implementation Guide: The Dos and Don'ts of GASB 87

Posted on 4/15/19 1:47 PM by Taft Tucker in GASB

The GASB 87 lease reporting standard has been all but forgotten.

In the hype of public companies preparing for compliance last year and private companies up next at the plate in 2019, the complementary mandate for government bodies is flying under the radar.

But the deadline is the same - Jan. 1, 2020 - and all the same repercussions apply to GASB 87 offenders as they do to FASB 842.

It’s time to bring GASB 87 out of the closet.

We put together a list of the essential facts you need to know about GASB 87. With a short timeline of just 9 months to plan and execute - and few solutions on the market - you’ll benefit from understanding the dos and don'ts now.

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