On October 16, 2019, the FASB Board voted to approve an Accounting Standards Update (ASU) to delay the effective date of ASC 842 by one year for private companies. Click here to see an article from Accounting Today with more details. Warren Averett is ready to assist you with understanding what this means for your company and how to begin the implementation process.
We recommend our clients take advantage of the one-year deferral and use this time to start planning for the implementation now and not wait a year. Companies can use this extra time to strategically review and educate themselves on the provisions for lessees contained in the standard so that the process of implementing the complex changes is smooth and efficient.
If you have questions about how the new leasing standard will affect your company, please Contact Us.