Simplified technical accounting and automation solutions tailored for your needs
ASC 842 compliance is challenging and the time and effort required for adoption is also often underestimated. Therefore, the Financial Accounting Standards Board (FASB) has proposed a deferred deadline to allow companies more time to assess their current lease portfolios, accurately select a software solution, adopt appropriate process and procedures and develop a plan to move forward. External resources are often required to become compliant, and selecting your advisor is a key decision. The right choice supplements your internal personnel with only the services you need, in addition to best practices and timely guidance.
No two companies are the same; companies are unique by size, industry, geography and more. RSM understands this so our ASC 842 approach is flexible, with elements tailored to your needs, including
Planning for implementation
- Establish your project governance (steering team, stakeholders)
- Identify and document internal and external resources
- Develop a high-level project road map
Assessing your current-state processes
- Understand your leasing environment and portfolio (real estate, equipment and embedded leases)
- Evaluate business processes and system requirements
- Perform software fit analysis
- Begin data collection process
Developing and adopting future state processes
- Begin abstracting lease data from contracts
- Draft leasing accounting policies and procedures
- Develop future state operational processes and controls
- Create technology implementation plan
- Engage with auditors for process buy-in
Implementing the future state
- Implement and test the new lease technology solution
- Implement new accounting policies, processes and controls
- Provide training to stakeholders
- Review implementation results with auditors
- Assess tax impact
Go-live and ongoing compliance with ASC 842
- Go-live
- Perform ongoing maintenance of technology system
- Ensure continual review and improvement of future state accounting and operational policies and control
