On-demand webinar summary
Your lease portfolio requires consistent upkeep to remain compliant with ASC 842. As your leases change, how will you stay audit-ready?
In our recent webinar, How to Prepare for Day 2 Lease Accounting, experts from Visual Lease and BDO shared insight into:
- What’s required to remain compliant throughout Day 2
- When to reassess and remeasure
- Processes to implement now for success later
Key Elements to Sustain Lease Accounting Compliance
When identifying a process to ensure ongoing lease accounting compliance, ask yourself:
- Have leases been added, terminated, shortened, extended or impaired?
- Have there been changes to service agreements (embedded leases)?
- Have assumptions changed related to extensions or purchase options?
- Have leasehold improvements been made?
- Do you have a process in place to maintain completeness and accuracy?
When to Reassess Leases
As leases evolve, you will need to continuously review them. In particular, it’s important to be aware of the following:
- A significant event or change within the lessee’s control directly affects whether the lessee is reasonably certain to exercise (or not to exercise) an option
- An event occurs that contractually obliges the lessee to exercise (or not to exercise) an option to extend or terminate the lease
- The lessee elects to exercise an option even though the entity had previously determined that the lessee was not reasonably certain to do so
- The lessee elects not to exercise an option even though the entity had previously determined that the lessee was reasonably certain to do so
When to Remeasure
There are numerous conditions that impact when to remeasure a lease.
To learn more about what is required to maintain ongoing lease accounting compliance, view the on-demand webinar: How to Prepare for Day 2 Lease Accounting.