Riveron Roundup: Lease Accounting (ASC 842)
The new lease accounting standard marks a stark change in how companies report their leased assets. Public companies have been reporting under the new standard since January, while the deadline for private companies to adopt ASC 842 will likely be extended until 2021. Part of the reason for this potential extension is that, for many companies, implementing the new standard has been a much larger undertaking than initially expected, with wide-reaching implications across the entire enterprise. As a result, companies should use the additional time to prepare and execute a comprehensive plan to implement the new standard. The following Riveron resources are intended to help companies navigate the various challenges and complexities of this implementation process.
1.
Preparing for an Extended Lease Accounting Adoption Deadline
Michael Cahill, David Marquardt
FASB voted to extend the deadline for private companies to adopt the new standard. Here is a look at the steps management teams can take to critically assess their readiness to properly utilize this extended time period to implement the new guidance.
2.
Webinar: The Hidden Benefits of ASC 842, Vendor Rationalization and Lease Spend Reduction
Michael Cahill
Adopting ASC 842 is not simply a compliance exercise; it is an opportunity to take advantage of hidden benefits such as vendor rationalization and spend reduction. Data that was previously decentralized and often mismanaged is now aggregated, normalized, and ready to be analyzed. This webinar explores the practical ways to leverage and analyze the significant data that companies have gathered as part of their ASC 842 implementation.
3.
Post ASC 842 Adoption Clean Up and Lessons Learned
Steven Sayewitz, Matt Tepfenhart
Few companies anticipated the ripple effect of clean-up activities that would emerge following adoption. Now, faced with a growing list of challenges, companies are picking back up where implementation activities left off and determining how to solve lingering problems to set themselves up for long-term success. Public companies can begin to tackle the laundry list of residual clean-up activities, while private companies can incorporate these lessons learned into a robust adoption plan.
4.
Webinar: Ask the Experts on Lease Accounting
Riveron Experts
From practical expedients to lease data to embedded leases, Riveron analysts explore all aspects of the new lease accounting standard to help companies navigate the challenges and complexities that can emerge during all phases of the implementation journey.
5.
Overcoming the Top Challenges of Implementing ASC 842 Lease Accounting Standard
Helen Mason
Lease collection and abstraction. System selection, configuration, and implementation. Internal control design and assessment. Accounting policy development. These are just a few of the workstreams that, under the new standard, often require significant time and effort. What are some of the ways that companies can address these challenges?
6.
Evaluating the Lease Term Under the New Standard
Helen Mason, Drew Niehaus
Determining the term of an identified lease has become a key topic of discussion surrounding the implementation of ASC 842. This decision can have material balance sheet implications where leasing is a significant component of a company’s business. Riveron experts explore the impact and practical applications of lease classification.
7.
Leases Are Here—Are You Prepared?
Michael Cahill, Patrick Garrett
Adopting the new lease standard will be a challenge for many companies, but, with the right approach, companies can successfully prepare for and execute this significant accounting and financial reporting change. Management teams will have to prioritize the tasks necessary to ensure compliance and improve the management of their leased asset portfolios. These readiness topics are a good place to start.
8.
Tech Will Lead the Way with New Lease Accounting Guidance
Steven Sayewitz, Matt Tepfenhart
The use of technology can help companies capture the benefits of enhanced, centralized processes, improved lease management, and increased data visibility that ultimately lead to cost savings and more accurate financial data and disclosures. Riveron experts weigh in on selecting and implementing the right lease accounting software for long-term impact.
9.
Unlock the Hidden Benefits of Lease Accounting Rules
Patrick Garrett, Bill Maloney
If implementation is approached strategically and thoughtfully, the byproduct is a centralized and efficient lease management structure that yields significant benefits. From greater data visibility to the opportunity for more effective and efficient operation of a company’s leased assets, there are several hidden benefits of ASC 842 that companies can unlock.
10.
Impacts of New Lease Accounting Standard on Oil and Gas Companies
Helen Mason
While certain sectors of the energy industry were largely unaffected by the new revenue recognition standard, ASC 842 will have an impact on nearly every industry and will be particularly impactful for oil and gas companies. Here are some industry-specific considerations for energy companies as they implement the new standard.
