4 things to know and 3 things to do to be sure management is ready for the new standards.
Upcoming changes to the FASB’s lease accounting guidance promise to affect a wide range of organizations, particularly lessees, but also lessors. Plans to assess the expected impact on the organization and how to implement the new standard should therefore be on the agendas of many, if not most, audit committees.
The new standard goes into effect for public companies in fiscal years beginning after Dec. 15, 2018, and for private companies in fiscal years beginning after Dec. 15, 2019.
While the effective dates may still seem far off to some, the new standard will affect financial statements and internal accounting and, for many companies, future lease negotiations, administration and budgeting. In other words, it presents a number of issues for audit committees to discuss with management to ensure that the organization understands the impact, is prepared for adoption and can implement it smoothly.
Grant Thornton’s Accounting advisory services Managing Partner, Daryl Buck, a former FASB member, offers insights into key areas audit committees need to understand and actions that management teams should be taking now.
Read Grant Thornton’s latest Audit Committee spotlight and download the report HERE.