Avoid CPA Post-Busy Season Burnout with an Easy Head Start on ASC 842
The 2021 audit season poses unprecedented challenges for CPAs due to remote work, safety measures, PPP loan prioritization, audit fee pressures, cybersecurity, new tax rules, and the upcoming implementation of ASC 842 for non-public clients with fiscal years starting after December 15, 2021.
2021 audit season will most likely be the most challenging ever.
Between ongoing client needs, newly formed remote working teams, and additional workplace safety measures, prioritizing PPP loans, managing audit fee pressure, cybersecurity concerns, and new tax regulations, CPAs have a lot to work through this tax filing season.
As if this wasn't enough, the implementation of ASC 842 for non-public clients with fiscal years starting after December 15, 2021 kicks into gear.
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ProNexus Selects LeaseCrunch® as Lease Accounting Solution to Clients
LeaseCrunch®, a cloud-based lease accounting software designed by former CPA auditors to help implement ASC 842 and IFRS 16 standards, has been selected by ProNexus, a non-attest finance and accounting firm with 12 offices in New York and Michigan, to provide lease accounting solutions including calculation of Right of Use assets and liabilities, amortization tables, journal entries, and disclosures for their clients.
Sample Lease Accounting Reports
The Sample Lease Accounting Reports provide various exportable report types—including Journal Entries, Amortization Schedules, Footnote Disclosures, and All Lease Data—across ASC 842 Lessee and Lessor, GASB 87 Lessee and Lessor, and GASB 96 standards, each export featuring three tabs (Data, Criteria, and Lease) to display selected data, filters, and lease details, with some reports offering functional currency translation options.
Accounting Today names LeaseCrunch® as a top new product of 2019
Accounting Today named LeaseCrunch®, a lease accounting software developed by former CPA auditors and designed as an "audit in a box," as a top new product of 2019 for its customizable, user-friendly interface that simplifies compliance with new lease accounting standards, supports both CPA-led and client-managed bookkeeping, and includes features like audit guidance wizards, FASB and IFRS templates, and automated disclosures to efficiently handle complex lease portfolios.
Accounting for ASC 842 in Your Cash Flow Statement
The article explains that under ASC 842, leases are recorded on the balance sheet as right-of-use (ROU) assets and lease liabilities without immediate cash flow impact, with operating lease payments classified as operating activities and finance lease principal payments as financing activities on the cash flow statement, while initial recognition of ROU assets and lease liabilities are disclosed as non-cash investing and financing activities, and lease cash incentives from lessors to lessees are also considered in the presentation.
In the News: FASB Releases 2022 GAAP Taxonomy
The Financial Accounting Standards Board (FASB) released its 2022 GAAP Taxonomy update, introducing new reporting elements such as credit losses excluding accrued interest, reinsurance contracts, pledged assets, debt obligations with recourse, changes in reporting entity, balance sheet offsetting, and financial statement location clarifications, while also deprecating obsolete guidance, refining labels, and modifying references to enhance clarity and usability for accounting and financial reporting.
Lease Commencement Dates and What They Mean for Lessors and Lessees
The lease commencement date, as defined by ASC 842, is the specific date when the lessee gains control and use of the leased asset, marking the start of lease accounting and the initial lease period, which differs from the lease signing or effective date and is crucial for determining lease classification and discount rates for both lessors and lessees.