What Can Private Companies Learn From Public Companies?

Lease Accounting SECrets - SEC Comment Letters Report

After evaluating recent SEC comment letters* on lease accounting disclosures, LeaseQuery shares the findings in its new report, Lease Accounting SECrets Private Companies Can Learn From Public Companies. The report uncovers insight into some challenges private companies may encounter when on the other side of implementation – and how to avoid them.

Comment themes include:

  • Bring clarity to COVID-19 concessions and changes
  • Get descriptive when documenting discount rates
  • Track terms and understand values of variable rent payments
  • Treat ROU right, or risk non-compliance

*LeaseQuery evaluated SEC comment letters on lease accounting disclosures from public companies’ 2019 and 2020 filings across a range of industries, including healthcare, biotechnology, retail and financial services. The SEC issues comment letters on public financial filings when they conclude disclosures need clarification or correction. Filers then have the opportunity to respond to the SEC and provide additional information or propose amended disclosures. Both the SEC’s original comment letter and the filer’s response are made public when the SEC is satisfied that the comments have been addressed.