01 Nov 2022 ASC 842: Lease Accounting Made Easy
The new lease accounting standards (ASC 842) present significant business implications and complex financial reporting requirements.
To successfully comply, your company needs to be proactive in understanding the new lease standards, how they apply to your business, and the tools available when developing a strategy to report these changes.
Watch our webinar to hear how we can help you navigate the new lease landscape through insights, recommendations, and actionable steps. The webinar also features a short demonstration of NetLease, Haynie & Company’s recommended software program that reduces unnecessary manual calculations and the potential risk of material error, all while providing an uncomplicated solution when preparing for your audit.
Resources
- Lease Accounting Made Easy webinar recording
- Guide: Successfully transitioning to the new lease accounting standard guide
- Finance leases: how to measure them and put them on your books
- NetLease in 3-min Demo
ASC 842 is Coming – How Will it Impact You?
The private company adoption deadline has come and gone. To be GAAP compliant, most 2022 financial statements must present both operating and financing leases on the balance sheet. What does this mean for your company? Let’s use a basic office lease as an example.
A three-year office space lease will be classified as an operating lease. The future payments, discounted by two percent, will have a resulting right of use (ROU) asset and a lease liability on the balance sheet. If the three years of monthly escalating payments are $12-13k, the resulting asset and liability will be over $400k!
Chances are, this is a balance sheet impact that should be on the radar. Getting blindsided by a new liability could affect bank covenants, investor requirements, or other key financial metrics.
Haynie & Company can recommend a software tool that allows companies to manage their leases instead of waiting for us to come and show what the balance sheet impact will be from your lease portfolio. The software also automates monthly journal entries, lease modifications, and footnote disclosure requirements.
At Haynie & Company, we want to help you save time and money on your audit. The switch to ASC 842 this year will heighten the risk of material error and could cause complications when working in spreadsheets. We have worked hard to be proactive in looking for solutions, so your company doesn’t have to waste more time and money preparing for the audit. Join us on October 26th as we discuss the opportunity to automate your lease accounting.
3 reasons you should watch the webinar:
1. Find out more about the new lease accounting standards (ASC 842) and what that means for your audit
2. Learn how to reduce the risk of material error
3. Understand how a powerful but simple-to-use software, can replace your spreadsheets
Contact Us
DO YOU HAVE QUESTIONS OR WANT TO TALK?
Fill out the form below and we’ll contact you to discuss your specific situation.