Adopting the new lease accounting standard can be complicated, time-consuming and nuanced. Private companies are encouraged to continue lease implementation efforts in order to stay ahead of the game.
Lease identification, lease data input and remeasurement requirements of existing leases take a significant amount of time and effort. By staying proactive and assessing completion of lease population, businesses will have a solid foundation for when the new lease standard for private companies takes effect on Jan. 1, 2021.
If a company is still struggling to comply with the new lease standard, it should consider adopting a new software solution to manage the data. Now is a good time to forge ahead with lease implementation efforts, improve the quality of processes and refine the company’s approach to lease accounting.