Hundreds and thousands of articles, blog posts, newsletters, news stories and more have been written about the updated leasing standards and how your business can prepare, report, and comply. Sifting through information sources is time-consuming, especially when you want top-level details or even if you want an in-depth discussion. Whether you are an accountant, controller or auditor, below are 4 articles that are particularly useful for most businesses navigating ASC 842 for the mandatory January 1, 2022, deadline.
Lessee and lessor
This article by Deloitte, one of the big four accounting firms, defines a lease and the impact on the lessee and lessor with the new standard. Also, this article discusses information around what and how each party needs to recognize certain aspects of the lease. Deloitte also talks a little bit about the timeline of the new standards.
New ASC 842 standard
This PDF from RSM USA is a resourceful guide that discusses reducing the complexity of the new ASC 842 standard. While the PDF is lengthy, the thoroughness provides valuable details for any size company who is working to become compliant with the standards for lease classifications and reporting. From identifying if a contract has a lease to paths to compliance, this PDF is worth referencing.
Auditor approach
The Journal of Accountancy article talks about the judgments auditors may make, the challenges that come from the different identification parts of a lease, as well as a specific approach for adopting the new standard. Like other accounting changes in the past, implementation of Topic 842 will likely be a learn, analyze and refine process until the desired result becomes another recurring accounting activity.
Implementation process
Some implementation processes to be considered as well as post compliance insights and issues are discussed in this PWC article. Filled with best practices and insights and opportunities, this article points out that even with the challenges of implementing the new lease standards, auditors should look for opportunities like standardization, centralization and automation.
Bottom line
Lease accounting under the new standards is complex and shifting thought processes are leading to a digital transformation. Experts shared how trusted automation will bring about improvements in accounting and auditing practices, as well as further benefits of cost and time savings. Learn from these experts and take these steps now, to ensure you are compliant and have a solution to lease accounting reporting.
