Private Companies Transitioning to the New FASB ASC 842 Standard
The experiences of public companies in transitioning to the ASC 842 lease accounting standard have underscored the complexities and potential pitfalls of the process. These lessons learned are invaluable for private companies, who must heed these insights as they approach their own compliance deadline at the close of 2020.
Among the key challenges faced by public companies during their ASC 842 implementation efforts were data gathering, lease classification, and the integration of new processes and systems. These challenges often required a significant investment of time and resources. Private companies can learn from these experiences and proactively address these issues to streamline their own transition.
iLease Management, LLC's recently published guide, "Key Provisions in Transitioning to the New Lease Accounting Standard For Private Companies," serves as a beacon of guidance in this endeavor. It offers private companies a structured framework for understanding and adhering to ASC 842, covering vital provisions and providing a step-by-step roadmap. This resource is a crucial tool to help private companies not only comply with the standard but also do so efficiently.
Moreover, the lessons from public companies emphasize the importance of early preparation. Waiting until the last minute to address ASC 842 compliance can lead to rushed, costly, and potentially error-prone implementations. Instead, private companies should seize the opportunity to start their transition efforts well in advance, allowing for careful planning and meticulous execution.
In conclusion, the transition to ASC 842 is a significant undertaking, and the experiences of public companies have illuminated the path for private companies. By taking lessons learned from these pioneers, leveraging the guidance provided by iLease Management, LLC, and initiating their transition efforts promptly, private companies can ensure a successful and efficient journey towards ASC 842 compliance. This proactive approach not only simplifies the process but also positions them for improved lease accounting transparency and compliance.
The Private Company Guide to ASC 842 Lease Accounting
Private companies are required to comply by the end
of 2020 and should consider applying the lessons learned from the experiences of the public companies when starting
their ASC 842 implementation efforts. iLease Management, LLC has recently published a guide called Key Provisions in
Transitioning to the New Lease Accounting Standard For Private Companies to help private companies
understand the key provisions of the changes and the path to a successful transition to the ASC 842 Lease Accounting
Changes.
iLease Management, LLC has been dedicated to providing research and technology,
iLeasePro, assistance to help companies comply with the complex changes of the
ASC 842. Please feel free to reach out if you need help.
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