Are you afraid of the looming accounting standards? ASC 842, GASB 87, and GASB 96 may be frightening, but ghosting them isn’t the right answer. At some point, you have to approach compliance head on. While you should beware of the repercussions of noncompliance, there is no need to panic!
With the right resources, you won’t feel the need to run away from your transition. Use the tips below to help face your compliance fears.
Compliance deadlines
Feeling spooked by the new guidance is a common reaction. LeaseQuery will walk you through the dark and into the light. The first step is making sure you are aware of the correct compliance date for the standard you’re adopting. Pick your poison below.
ASC 842
ASC 842 is the new lease accounting standard for private and public companies reporting under US GAAP. The standard is effective for public and private entities with fiscal years beginning after December 15, 2018, and December15, 2021, respectively. Prior guidance was ASC 840.
GASB 87
GASB 87 is the new lease accounting standard for state and local governmental organizations. The standard is effective for all fiscal years beginning subsequent to June 15, 2021. Prior guidance includes GASB 13 and GASB 62.
GASB 96
GASB 96 addresses the accounting treatment and financial reporting for subscription-based information technology arrangements (SBITAs). The standard is effective for fiscal years beginning after June 15, 2022. There is no prior guidance for these types of contracts.
Tools to help your transition
With the right tools for your transition, ghosting the standards is a thing of the past. There are no tricks here, only treats.
ASC adoption survival kit
LeaseQuery’s step-by-step ASC 842 Adoption Kit will help you on your path to compliance. With tools like the lease identifier and FASB transition guide, you will be armed and ready to take on the new standard.
GASB 87 adoption kit
Ghoulish GASB 87 isn’t nearly as frightening when you use our GASB 87 Adoption Kit. It’s packed with resources like the GASB transition guide and helpful blogs as you navigate your compliance journey.
Transition guide for GASB 96
Thinking about ghosting GASB 96? With our GASB 96 Transition Guide, you won’t need to disappear! It outlines all the steps to follow when implementing the standard.
Lease accounting software
The best defense against the spooky new standards is to implement reliable lease accounting software. Many benefits to lease accounting software last long after compliance, including:
- Improved budgeting and forecasting
- No missed critical dates
- Better interdepartmental collaboration
- Easier audits
- Organized lease data
Summary
Don’t let the fear of noncompliance keep you up at night. The tools provided in this article will help you find the courage to comply with confidence. LeaseQuery is fully compliant with ASC 842, GASB 87, and GASB 96. With our software by your side, you won’t have to ghost the new accounting standards. Eat, drink, and be scary this Halloween knowing you’ve taken steps towards a successful transition.
