It’s a slow clap for companies who’ve implemented the new lease accounting standards.
That’s because most organizations made a mad dash for the finish line. In an October 2018 survey by PwC, more than 15 percent of public companies hadn’t even started implementation of FASB ASC 842 that took effect a few months later.
Private companies aren’t far behind.
News of a deadline extension - most likely due to procrastination and an overwhelming to-do list - is hot off the press.
Even for those who did meet the compliance deadline, most would admit it was little better than a hack job with an all-hands-on-deck approach and little-to-no expertise directing the veritable financial circus.
With 6 months to go before public companies submit reporting under the new FASB ASC 842 compliance standards once more, it’s time to start the cleanup process.
Companies must push themselves to rework the way their team functions to create processes, procedures, and controls for long-term success under post-FASB ASC 842 implementation.