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Lease Accounting

Achieve Lease Accounting Excellence with ASC 842 Compliance

As the transition from ASC 840 to ASC 842 affects every organization, it is imperative to grasp the new lease accounting requirements established by the Financial Accounting Standards Board (FASB). The revised standard mandates the recognition of both operating and finance leases on company balance sheets.

Throughout this transition, organizations will encounter challenges such as:

CFGI Has Your Back

Navigating the ASC 842 era of lease accounting demands a blend of advanced technical accounting skills, business acumen, and IT expertise. At CFGI, our cross-functional experts offer a lucid perspective on your accounting lease contracts, processes, and compliance programs. We provide recommendations for strategically leveraging technology, ensuring compliance with minimal disruption.

Transforming obstacles to opportunities in four stages

CFGI’s technical accounting experts are ready to support you at every step of the journey, focusing on where you need assistance the most:

Identify lease accounting project leads and form a steering committee with experts from accounting, finance, treasury, operations, procurement, legal, and tax. With CFGI’s guidance, this team gathers lease data across the organization, including embedded leases within service contracts.

Collaborate with stakeholders to establish a compliance policy for leased assets, incorporating input from external auditors. Form a project team that includes technical accounting experts with extensive financial reporting experience. Coordinate implementation efforts and define accounting policies backed by meticulous documentation to determine which leases require adjustment under ASC 842.

Calculate and process new entries for operating leases into the balance sheet. Conduct training on the new lease accounting policies, utilizing mock examples of finance, operating, and embedded leases to ensure accurate implementation.

To better adapt to the continually evolving industry and achieve synergies to drive profitability, the business services industry has been experiencing a high level of consolidation and merger and acquisition activity. Whether it’s assessing the accounting for an acquisition or divestiture, integrating or standing up the finance, accounting, or treasury functions of an acquired business, preparing for a carve-out or spin-off transaction, performing valuations of the underlying assets and liabilities acquired, executing buy or sell-side due diligence, or evaluating the tax impacts of a transaction, CFGI has the established expertise to ensure all M&A related implications and challenges are considered.

To learn more about how CFGI can support your organization throughout the transition and beyond, contact our experts today.

Connect With Our Leaders

Michael Handley

Partner
(508) 446-5718
mhandley@cfgi.com

George Sarianos

Partner
(215) 558-2860
gsarianos@cfgi.com

Marc Villano

Managing Director
(908) 246-7391
mvillano@cfgi.com

Ready To Get Started?

Ready To Get Started?