Don’t underestimate lease accounting challenges

September 7, 2019

Accountants are underestimating the challenges involved in implementing the new lease accounting standards, also known as ASU 842, according to recent research.

A recent LeaseQuery survey by Encoursa showed that only 37% of companies in the early stages of implementing the new standards think it will be hard. But 67% of those in the latter stages of implementation say they’ve had difficulty.

The new rules were effective Jan. 1 for public companies, but private companies have until 2020 to implement them. However, due to the rules’ complexity, FASB is recommending a further delay for private companies, just 5% of which have completed the transition so far. Learn more.

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