ASC 842, Leases
New accounting standard will have a significant impact on many organizations' financial statements
To Our Clients and Friends -
 
If your business is required to prepare financial statements in accordance with Generally Accepted Accounting Principles ("GAAP"), you need to prepare for ASC 842. The Financial Accounting Standard Board's Accounting Standard Codification 842, Leases, significantly impacts the accounting and reporting for leases, including leases of equipment and real estate. ASC 842 requires organizations who lease assets to recognize, on their balance sheet, the assets and liabilities for the rights and obligations created by those leases with terms greater than one year.
 
Significant features of the standard include:
 
ASC 842 is effective for annual reporting periods beginning after 12/15/2021 (i.e. calendar year 2022)

ASC 842 requires all leases (including operating leases) to be recorded on the balance sheet

Considerable judgment and detailed analysis are required to implement the standard properly

Adoption is mandatory for Companies preparing financial statements in accordance with GAAP
 
LevitZacks will be offering a webinar later this year to discuss the provisions of the standard and its implementation. Stay tuned for details. In the meantime, we have a dedicated team that can help your financial statements meet ASC 842's requirements. Please reach out to your LevitZacks contact to discuss further.”
 
We are Here to Help
We are here to serve you, our valuable clients. we will be offering webinars in a hybrid virtual/in person format later this year, where we will address many of the implementation questions you may have. Look for additional details to follow soon. In the meantime, if you want more personalized advice on how to adopt ASC 842, please contact us. 
word_cloud_accounting_2.jpg
Visit Our COVID-19 Resource Page

LevitZacks has a dedicated COVID-19 Resource Page with the latest resources and guidance for our clients.

From SBA resources and updates for employers and employees to federal, state and local tax and regulatory changes, you will find the latest resources available in one place.
This information has been provided for informational purposes only and not actual professional tax and/or accounting advice. Before making any decision or taking any action you should consult with your professional advisor about your specific situation.
Please contact your engagement shareholder if you have any questions.