Understanding the requirements of the new lease accounting standards can help you move forward with confidence.
CLA listens to you; we build a plan together to address your needs, and we bring that plan to life.
What’s on your mind?
- Understanding and complying with the concepts in the new lease standard
- Identifying how the standard will impact the recording and disclosure of leases in your financial statements
- Adjusting processes and developing new procedures to capture data required to meet the new lease accounting standard
- Training staff who may have to change their processes
- Selecting and implementing an IT solution
- Assessing the organizational impacts beyond general accounting and financial reporting
Create opportunities with CLA
CLA’s experienced professionals can help you design and implement processes that will meet the requirements of the new lease accounting standards ASC 842 and GASB 87. After we develop a clear understanding of your environment, we’ll provide clear recommendations based on industry best practices, and help you develop a training and implementation plan.
Lease accounting standard services and methodology for ASC 842 and GASB 87
We help management develop a high-level plan and establish a steering committee to provide project oversight.
Orientation and training phase
We develop an understanding of your various lease agreements and provide an overview of the convergence guidance. We also develop a customized training program.
Lease inventory phase
In coordination with your staff, we analyze select existing lease and service arrangements and help you determine if they meet the definition of a lease. We also help collect the required data to record the lease on your balance sheet.
Functional area phase
We work with your project team to develop an understanding of the impact the lease convergence guidance will have on each functional area to provide training and assist in the development of a plan.
Lease accounting phase
In the final project phase, we will help you apply the guidance to your leases by recommending modifications to existing accounting and reporting processes and suggesting changes to accounting policies.
Our team also helps you communicate the impact of the new standard with the users of your financial statements and others. We assist in the development and delivery of training on the new standard for members of your organization.
We can provide you with a comprehensive suite of accounting services.
Effective dates for the new lease accounting standards
|Entities subject to ASC 842|
|Public entities||Annual reporting periods beginning after December 15, 2018. Early adoption is permitted.|
|Non-Public entities||Annual reporting periods beginning after December 15, 2019. Early adoption is permitted.|
|All entities subject to GASB 87|
|Reporting periods beginning after December 15, 2019. Earlier application is encouraged.|