After a couple of FASB deferrals, ASC 842 lease accounting standard is now effective January 1, 2022, for years beginning after December 15, 2021. That means nearly all calendar year companies will have an impact on their 2022 financial statements. We are pleased to empower growth of your organization through several content pieces exploring the implementation of ASC 842. Refresh your memory with our previously published articles as summarized below, and register to join us virtually at our next Restaurant MasterClass webinar being held on June 9th, designed to explore the implementation of the new lease accounting standard for US GAAP financial reporting.
Lease Standard Implementation Series:
- Lease tracking solution (Excel vs. lease software)
- Resources needed to implement and maintain
- Identifying the lease portfolio
- Evaluating the lease agreements and overall scope
- Calculating the lease obligations and right of use assets
- Financial reporting and disclosures
- Internal control processes going forward
Additional implementation resources:
- What is Incremental Borrowing Rate
- General Ledger under the New Lease Standard
- What is a Right of Use Asset?
- Transitioning Leases and Why Equity Likely isn’t Affected
- What is Capital Lease Accounting?
- Separating Lease and Nonlease Components
- What Qualifies as a Lease under the New Lease Standard?
- How the new Lease Standard Affects CAM Accounting
- Now is the Time for Lease Accounting
There are many nuances to the lease standard; therefore, working with a professional such as a CPA provides another resource for technical knowledge and know-how. Now is the best time to get started on the implementation. We would not recommend waiting until the end of your year to start this implementation as it does take time, especially for the restaurant industry.
If you would like to talk through your approach, your GBQ team is here for you.
Article written by:
Kristin Romaker, CPA
Senior Manager, Assurance & Business Advisory Services