The new lease accounting standards under ASC 842 are sticky, demanding, and—after multiple delays—most definitely here for all companies, whether public or private when the Financial Accounting Standards Board finally said no more extensions, as Accounting Today reported in November 2021.
This is important for property owners as well as tenants. ASC 842 requires office lessees to recognize assets and liabilities associated with most leases, with potential significant impacts on balance sheets.
With literally years of advance notice to implement the new standard, many have made progress toward compliance. However, the big surprise is how many entities are still struggling, according to a new report commissioned by lease management vendor Visual Lease.
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