After years of build-up, the new ASC 842 lease accounting standard went into effect in 2022 for private organizations. ASC 842 – and is intended to account for all lease obligations on financial statements, rather than excluding operating leases as has been the standard. This change ensures that a company's financial situation is reflected as accurately as possible within the statements. All leases must now appear on the balance sheet as a Right of Use Asset and Lease Liability.
Our team will assist on all aspects of the implementation – from conducting the preliminary impact assessment to analyzing and categorizing existing leases, establishing policies and procedures for ongoing lease activity, recommending, and addressing technology and infrastructure requirements, and project management.
When are companies required to use the new standards?
- Public & International Companies - Fiscal Year after December 15, 2018
- Private Organizations - Fiscal Year after December 15, 2021
Our detailed plan will focus on potential challenges and risks along the way.
Herbein professionals can guide you through how this standard will impact their financial position and overall accounting environment.
Our services include helping businesses successfully implement and maintain compliance with ASC 842 through a structured approach that best fits your organization.
Herbein can assist your business in implementing ASC 842, from pre-implementation advisory and training to implementation and execution and post-implementation guidance. We will work with your team to identify and execute a complete scope of work to plan for, achieve, and maintain compliance.