ASC 842 Lease Accounting Compliance

Some organizations want to handle implementation themselves using a preconfigured lease accounting application, database, and reporting template.

If you have fewer than 20 leases, RSM’s lease accounting software is a cloud-based solution that provides the functionality you need to help meet the requirements of ASC 842 and the IFRS 16 lease standard.

A good fit for organizations:

• With small, less complex lease portfolios
• That need lease accounting compliance only
• In search of a cost-effective alternative to Excel

Consider an alternate path if you:

• Have multicurrency leases and leasing has a significant economic impact on your business
• Need to report on leases in conjunction with a 4-4-5 or 13-period calendar
• Are looking to fully integrate with your enterprise resource planning system
• Need to allocate lease expense, or impair or remeasure a lease
• Require lessor accounting

842 Express

This option is designed for organizations seeking basic adoption services for small, domestic lease portfolios.

A good fit for organizations:

• Carrying 10 or fewer leases
• With low turnover in leases
• That have preestablished practical expedients and policy elections

Consider an alternate path if you:

• Have foreign currency-denominated leases in your portfolio
• Are looking to fully integrate with your enterprise resource planning system
• Require lessor accounting

842 Express+

For organizations with small to medium-sized lease portfolios, the 842 Express+ option allows you to scale to a higher lease count with the addition of ongoing lease accounting services.  

Select and implement a technology configured specifically for your organization and develop internal capabilities for ongoing lease accounting and lease management.

A good fit for organizations:

• With larger, more complex lease portfolios (e.g., numerous real
  estate leases)
• With limited internal resources and expertise to adopt the standard
• In which leasing has a significant economic impact on the business (e.g., multiunit
  retail or other sites)
• That want an approach fully tailored to specific needs (e.g., a system designed and configured for accounting and lease administration)
• That are looking to fully integrate a lease accounting solution with an ERP

If full implementation seems like the right path for your organization, RSM recommends performing a comprehensive system selection. Learn more about RSM’s lease accounting technology preferred solutions.

In addition to aiding software selection, RSM assists clients with the key accounting activities required to implement ASC 842. These include identification and analysis of embedded leases; data and lease abstraction; updates to accounting and financial reporting policies, disclosures and documents; developing future-state business processes; establishing and conducting training; and overall project management. With 250+ lease administration and accounting consultants and access to best-in-class data analytics and abstraction technologies, RSM brings deep technical knowledge and experience implementing ASC 842 at public and private organizations across all industries.

Organizations might also consider post-implementation lease accounting services to ease the burden of ongoing lease accounting changes and updates.

Rather than implementing in-house, leverage RSM for ongoing lease accounting support. RSM's lease accounting services help simplify ASC 842 compliance by providing a streamlined approach for not only initial adoption but also ongoing lease accounting and reporting.

A good fit for organizations:

• Lacking in-house expertise in accounting, systems and valuation for leases under ASC 842
• Lacking multiple full-time employees to focus on lease accounting reporting and compliance
• Challenged to maintain internal staff that possess all necessary skill sets