Reducing the complexity of ASC 842 compliance
The ASC 842 lease accounting standard represents a significant shift in accounting processes and could have far-reaching effects on your business. Companies that have a considerable number of leases face a substantial implementation effort, encompassing technical accounting design and policy development, lease data management and abstraction, technology design and implementation, tax impacts and new ongoing processes, workflow and controls.
As with any change of this magnitude, planning and preparation are paramount for success. However, many organizations are underestimating the level of effort, complexity, resource requirements and timeline for adoption.
Download our new guide to learn more about how to approach ASC 842 requirements and develop a successful compliance strategy. Specific topics include:
- Why ASC 842 is not just another disclosure
- Lease accounting lessons learned from public companies
- A compliance timeline
- Three paths to compliance
Depending on the size and complexity of your lease portfolio and the preparedness of your organization, an ASC 842 timeline commonly ranges from three to six months. Being ready to move forward with ASC 842 on Jan. 1, 2022, is the best path forward with the least amount of risk, but you must allow enough time for successful planning, transition and adoption.