What are the top industry challenges organizations face when meeting the ASC 842 lease accounting deadline?
Upon the initial release of the ASC 842 lease accounting standard, organizations across all industries went to work to understand how the rules applied to them – and more importantly, to find a solution that helped them meet their respective deadlines.
And while these new lease accounting requirements have proven to be quite challenging for organizations, some face a tougher road to compliance due to industry-specific concerns, such as unique accounting structures and variable lease components.
Over the past few years, the Schneider Downs simpLEASE accounting team has helped public and private organizations across a variety of industries successfully implement the ASC 842 lease accounting standard and meet their reporting deadlines.
While the initial focus was on 2022 year-end requirements for private companies, our team is now working with clients with non-traditional year ends and specialized needs based on their industry.
To help organizations understand lease accounting challenges specific to them, our team is sharing some of the top lease accounting considerations by industry below.
- Accounting for leases on assets expensed to jobs
- Accounting for leases on assets managed in the equipment modules
- Short-term or month-to-month lease management
- Currency considerations
- SAAS global access
- Financing lease equipment with longer useful life than the lease term
- Leases with large buyout options
- Short-term or month-to-month lease management
- Unique accounting structure
- Non-traditional accounting calendars
- Complex property leases that require in-depth analysis
- Variable lease components such as those related to sales
- Non-traditional accounting calendars (4-4-5 or 13 periods)
Regardless of industry, the fact is that meeting the ASC 842 lease accounting standard is still an uphill battle for many organizations – and time is running out. If any of these challenges sound familiar, we are happy to help.
Please contact a member of our team at [email protected] or learn more about simpLEASE at www.schneiderdowns.com/simplease.
Related Resources
- simpLEASE FAQ
- simpLEASE Software Overview
- Managed Lease Accounting Overview
About simpLEASE Lease Accounting Software
Built by accountants for accountants, simpLEASE makes the FASB’s Accounting Standards Certification (ASC 842) simple. Designed to solve leasing accounting challenges for organizations of all sizes, simpLEASE is a scalable web-based solution that streamlines the lease accounting process and provides fast and accurate results regardless of whether you have two or two thousand leases.
To learn more, visit our dedicated simpLEASE Accounting page.
About Schneider Downs Managed Lease Accounting Services
The Schneider Downs Managed Lease Accounting service provides an end-to-end lease accounting solution that combines our lease accounting expertise and simpLEASE software to help clients meet ASC 842 and IFRS 16 lease accounting standards reporting requirements and deadlines.
For more information on our Managed Lease Accounting solutions, please contact Nicholas D. Lombardo directly at [email protected] or visit our dedicated Managed Lease Accounting page.
