New Lease Accounting Standard | Whitepaper | Ohio CPA Firm

The New Lease Accounting Standard Is Here

Lease Accounting | Rea CPA

WHITEPAPER: What You Need To Know About The New Lease Accounting Standard

While we’ve all been trying to keep our heads above water as a result of the unprecedented impact of the COVID-19 pandemic and the obvious challenges associated with it, the new lease accounting standard required by the U.S. Generally Accepted Accounting Principles (GAAP) has been inching toward its required implementation date. If you own or operate a U.S.-based business and lease anything tied to it – from real estate and vehicles to office equipment and more – you are probably aware that some new requirements for accounting for those leases are in the offing.

After several delays, the requirement for private entities to adopt the new lease accounting standard – Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), is now quickly approaching. This new lease standard is effective for years beginning after Dec.15, 2021 (i.e. calendar year 2022) and for interim periods within fiscal years beginning after Dec. 15, 2022. The new lease standard, ASC 842, requires significant changes in the accounting treatment of leases under (GAAP). Entities that hold numerous equipment and real estate leases – particularly those with operating leases – will be most affected by this new guidance. So, what should your company do to prepare, and why should it be prepared?

What Is The New Lease Accounting Standard?

To help you understand the ins-and-outs of the new lease accounting standard, we’ve compiled a helpful whitepaper that provides you with:

  • A general overview and highlights
  • Implications, questions, and recommendations to consider
  • Insight into lease treatments and their impact on companies
  • Necessary changes to financial statement
  • And more …

If your company hasn’t started preparing for the new lease standards under ASC 843, you can’t afford to waste another minute. Preparing now will ensure that your company remains in compliance with GAAP and, by extension, will streamline your company’s interaction with third-party users of your statements, such as lenders. The best way to get started is to download our free whitepaper on the topic.

Download The Whitepaper: A New Lease Accounting Standard Overview

To download, simply fill out the short form below and we will send a link to the whitepaper right away. From there, if you have questions or need help implementing the new lease accounting standard, you can reach out to our team of lease accounting standard specialists immediately. Our team will help you better understand what are the new lease accounting standards, how leases affect the balance sheet, and, of course, will help you answer questions pertaining to why is lease accounting important to your private company.