Are You Ready for The New Lease Accounting Standard?
In February 2016, the FASB released its much-anticipated lease standard, ASU No. 2016-02, or ASC 842. Then in June 2017, the GASB released its own lease standard, GASB 87. Regardless of which standards you follow, these lease standards may significantly impact your entity if you have contracts that are leases or contain leases that support your operations.
How We Can Help You
Cherry Bekaert understands the impact of the new lease accounting standards on your entity could be significant. We know this is not a one-time implementation issue; therefore, we have developed the following service offerings to assist with compliance and a long-term business solution.
We can also assist with implementation and IT system changes if necessary through Cherry Bekaert’s IT system partners.
Lease Accounting Service Offerings
- General diagnostic discussion with management
- Access to a cloud-based, third-party software to input lease data
- Consultation and interpretive guidance, including FASB, GASB, and AICPA interpretations
- Checklists and other tools for implementation
- Assistance with tool identification and vendor evaluation
- Assistance to management with identification of unknown or embedded leases
- Assistance in identifying additional disclosures
- Assistance in identifying additional reports and data needed
- Review of your management’s lease policies and practices
- Compare and contrast the ability of your current processes and controls and IT systems to meet the requirements of the new standards
- Analysis of potential impact on debt covenants
- Analysis of potential impact on compensation agreements
- Reviews of public company filings for comparable companies in similar industries