How has COVID-19 impacted the road to compliance and the accounting industry? Visual Lease’s Joe Fitzgerald discusses why FASB has proposed new changes to its lease guidelines and what it means for companies on their compliance journey.
COVID-19 has shifted the landscape in nearly every industry, and the lease accounting and compliance sectors have been no exception. The Financial Accounting Standards Board (FASB) has recognized the struggles companies have been facing during the pandemic and has proactively proposed changes to its processes and requirements for lessees and lessors in light of these circumstances. The accommodations made include FASB shifting the deadline to achieve compliance, granting private companies more time to prepare to meet its major lease accounting standards, including ASC 842, and several recently proposed modifications to the lease accounting guidelines.
The accommodations FASB made this year demonstrate that the future of many businesses is not as certain as it once was, and the industry is taking note and is willing to adjust. New lease accounting changes might still arise as the economic climate continues to shift, but compliance remains critical due to the time-consuming nature of the work required to gather, analyze and report data to achieve…
