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Webinar: Are You Ready for the New Lease Accounting Standard?

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Most private companies are now required to adopt the new accounting standard ASU 2016-02, Leases (Topic 842) for reporting periods beginning after December 15, 2019. For companies with a December 31 year-end, that reporting period will be January 1 through December 31, 2020. This update will result in placing most operating leases with terms longer than a year onto a company’s balance sheet.

However, both public and private companies are underestimating the challenges of transitioning to the new lease accounting standard, according to a new survey published in Accounting Today.

The survey, conducted by lease accounting technology company LeaseQuery, found that only 37 percent of companies in the early stages of implementation anticipate that their transition would be difficult. However, 67 percent of companies in the latter stages of implementation reported actual difficulty.

Are you part of that number?

If you haven’t started or are still working your way through the early stages and have questions, we’re here to help! While the Financial Accounting Standards Board has proposed a delay in the effective dates for certain companies for the credit losses, insurance, leases and hedging standards, do not underestimate the time it will take to implement.

Join us for a free webinar from noon to 1 p.m. Tuesday, September 17. Accounting and Audit Manager Gretchen Lozes Fischer will lead a discussion on the four main steps to get you and your organization into compliance:

  1. Gathering Contracts
  2. Tracking Contracts
  3. Financial Statement Impact
  4. Talking to Lenders

To register by 5 p.m. Wednesday, September 11, please click here.

Participants will be eligible to receive 1 hour of CPE.

About Ericksen Krentel

Ericksen Krentel CPAs and Consultants, founded in New Orleans, Louisiana in 1960 with offices in New Orleans and Mandeville, believes that serving as the clients’ most trusted adviser is grounded in going beyond the numbers.

That includes helping clients achieve their business and personal financial goals by providing innovative and exceptional services in the following areas: audit and assurance services, tax compliance and planning, outsourced CFO services and business valuations for a variety of industries; employee benefit plan audits; fraud and forensic accounting; business planning; IT consulting; loss calculations; and estate planning.

Learn more at www.ericksenkrentel.com.

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How to Gather, Track Contracts Ahead of New Lease Accounting Standard

The first step will be to gather your contracts, which probably will be the most time-consuming step, as it most likely will involve different departments and locations.