ASC 842 Implementation Services

With the latest lease act to be implemented in 2021, private companies will benefit from this lease with a more straightforward addition to the financial statement.

ASC 842 Implementation Services

For non-public business organizations, the Financial Accounting Standard Board (FASB) ASC 842 is valid for fiscal years starting after December 15, 2021 (i.e., will be effective for calendar-year-end entities on January 1, 2022.) The introduction of the lease norms allows businesses to have more lease arrangements than ever before on their balance sheet. However, the challenges for many private companies are that leases have traditionally not been held in a central place, and among all kinds of other contracts, embedded leases may exist. Implementation can require substantial investment, focus, and senior management leadership for big, mid-sized, and smaller private companies alike. It may require new or updated technology. To capture detailed data at new levels of detail, comprehensive abstraction of existing lease agreements is necessary.

While many firms get confused about where to get started. The ASC 842 experts at Pemmasani can assist you with the following:

  • A project schedule for model implementation, including dates and roles with actionable next steps
  • The company’s lease portfolio preliminary risk evaluation document
  • Assist in choosing the best lease accounting software for you.
  • Preparation of white papers on accounting policy and transition elections
  • Internal control design-Day 1 and Day 2 of adoption
  • Embedded lease review and estimation of scenarios to indicate the possible impacts of ASC 8422
  • Finalizing footnotes disclosures for leases

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