The FASB has issued ASC 842, Leases, which will require most leases to be recognized on the balance sheet and requires enhanced disclosures. Public companies were required to adopt this new accounting policy in 2019, while private companies have to adopt the new standard in 2022. As compared to the revenue recognition standard, it is expected that ALL contractors will be required to change its accounting policies for leases. The time is now to learn how this will impact your company.
Analyze how contractors in particular have found the adoption of ASC 82 to be challenging by using lessons learned from public companies who have adopted this standard.
Identify the basic rules for accounting for lease and rental agreements.