New Lease Accounting Standard

Although it is a difficult business climate right now, Neikirk, Mahoney & Smith are dedicated to bringing up-to-date news focused on the accounting sector to ease your hardships, such as with new standards such as the new lease accounting standard being implemented. LeaseQuery took a survey and the results were considerably under anticipated: 67 percent reported actual difficulty which nearly doubled 37 percent whom anticipated difficulty.

The Financial Accounting Standards Board has proposed a postponed deadline to take effective January 2021, which would give businesses one-year extension to implement the leases standard. Accounting Today reports, “The LeaseQuery survey found that over half of public companies (54 percent) have already completed their transition to the new standard, seven months after the deadline. But only 5 percent of private companies have completed the transition, with 58 percent of the companies polled saying they’re still in the early stages of assessing their implementation plans.”

Even if the delay is approved, both public and private companies alike need to proceed immediately with transition. LeaseQuery CEO George Azih comments, “While organizations await the FASB decision, one thing is clear: a delay is just a false sense of security. Transitioning to the new standard is a complex, time-consuming process, even when you have the best team and tools on your side. Private companies, nonprofits and government organization should continue to move transition plans forward, and with haste.”

More about the hardships of this transition can be found at accoutingtoday.com or to see the full results of the survey, visit leasequery.com.