If your company has a lease, this one goes out to you. Did you know that a new accounting standard (ASC 842) requires that companies recognize their leases on their balance sheets?
If you’re thinking this sounds like something you’ve heard before, you’re probably right. The deadline for companies to comply has been deferred twice now. As our guest, Josh says, “We’ve been talking about leases for a long time—seems like since dirt was being made.”
But, now, companies are drawing closer to the deadline for implementing this change, which will give their financial statements a pretty significant makeover. Some contracts may even need to be recognized as leases, depending on the agreement within.
Our guest, Joshua Bowen, CPA, CGMA, CAMS, joins our hosts to dig into what ASC 842 means for companies.
After this podcast episode, you’ll be able to:
- Understand how the new accounting standard concerning leases impacts your company’s financial statements
- Have an idea of how COVID-19 has impacted real estate and the implementation of this new standard concerning leases
- Know how long your company has to implement the standard when it comes to your financial statements
- Identify the challenging areas your business should be aware of in accounting for leases
- Have a basic understanding of how companies should approach implementation and the tips that can set you up to implement the standard well
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