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Lease Accounting (ASC 842)

Our Approach

ASC 842 (the new lease accounting standard) will dramatically change how companies handle lease accounting. Armanino’s ASC 842 experts provide you with peace of mind by addressing the disparity between where your company stands today on lease accounting and where it needs to be for compliance with the new rules.

With the January 1, 2019, compliance deadline for public companies already past and the January 1, 2021, deadline for private companies soon following, your business can turn to Armanino for expert advice and technical accounting support. Watch our on-demand webinar to understand the overall impact of ASC 842 for your organization.


Key aspects of ASC 842 include the requirement for lessees to recognize both operating and finance (capital) leases on their balance sheet and to distinguish between a right-of-use asset and lease liability. With a lease accounting gap assessment, your finance team can properly prepare for the changes your organization will have to make to become compliant. This assessment can enlighten your business leaders and board of directors about the impact the new rules will have on your business forecasting, key performance metrics, accounting policies, financial reporting and budgeting.

Assessment Types

  • Analysis: Armanino delivers a side-by-side comparison of current requirements versus compliance required by the new guidance.
  • Planning and Documentation:We provide a comprehensive memo with a plan to address the discrepancies uncovered by the analysis. The memo typically includes:
    • Gap analysis
    • Potential exposure for the company (estimated financial statement impacts)
    • Areas of the company affected by the new standard and what needs to change
    • Impact on existing metrics as well as potential covenant exposure
    • Changes to lease terms and conditions advisement
    • High-level dates to meet the implementation and reporting deadline
  • Roadmap to Compliance: We focus on people, process and technology augmentation and improvements that will be necessary for your company to adhere to ASC 842, along with a timeline for implementation. This analysis allow CFOs to report to executives and the board on next steps and required investments to meet the new guidance deadlines.


Make the transition to ASC 842 compliance by utilizing best of breed software to track all your company’s real estate and equipment leases in a single subledger. Armanino has partnered with industry leaders LeaseAccelerator and LeaseQuery to provide lease accounting software that integrates with and synchronizes data across your existing ERP, accounts payable and real estate software applications. Once you’ve worked with Armanino to deploy LeaseAccelerator or LeaseQuery, you can generate leasing data for financial statements with just a few mouse clicks, making ongoing compliance painless and efficient.




Lease Accounting Services

Do you understand the effort needed to adopt the new ASC 842 lease accounting guidance? Armanino’s expertise, experience and alliances can help your company to comply, optimize and drive value to your organization.

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