Time is running out to prepare for the new lease accounting standard requirements of ASC 842 (or Topic 842), which will affect privately-owned companies and nonprofit organizations with reporting periods that begin after December 15, 2021. The most significant change is the treatment of operating leases, which now must be recorded on the balance sheet as lease assets (right-of-use assets) and lease liabilities.
Navigating the new requirements can be tedious, but KraftCPAs has a solution with new, easy-to-use software ideal for companies and nonprofits with fewer than 20 leases. After a user enters the significant terms of the lease(s), the program handles the hardest work. The software also provides journal entries for users to record an initial lease and each month thereafter for the duration of the lease, as well as required footnote disclosure information.
For more information on the program and pricing options, reach out to Chris Hight or a member of our assurance services team.