What are the potential ripple effects for your company?
Let CRI help you swimmingly navigate lease accounting for your business.
The Financial Accounting Standards Board’s (FASB) updated lease accounting standard stands to push financial reporting requirements into uncharted waters. Companies will be required to record and recognize assets and liabilities of all leases with terms longer than 12 months. The enactment of this standard means that lessees (companies that lease equipment from others) will present more leases on their balance sheets. As a result of these significant changes, companies may need to enhance their processes to collect newly required lease information.
Although the standard is slated for reporting periods beginning on or after December 15, 2018 for public companies (and December 15, 2019 for nonpublic companies), it is never too soon to prepare. CRI’s CPAs and advisors are ready to dive in now and help you understand the standard’s impact on your business, as well as assist you in implementation of needed internal controls and training procedures. CRI’s team is ready to help ensure that you stay afloat in the sea of lease accounting changes.
5 Minutes On The New Lease Accounting Standard
Lease Accounting Timing
Two categories for implementation dates
DECEMBER 15, 2018
Reporting periods beginning on or before this date should utilize the lease accounting standard for public companies.
DECEMBER 15, 2019
Reporting periods beginning on or before this date should utilize the lease accounting standard for nonpublic companies.