Calendar year SEC registrants are required to adopt the new lease standard (primarily codified in FASB ASC 842) and all related disclosures with their first quarter 2019 Form 10-Qs. The quarterly financial statements and related disclosures show the impact and provide a rich source of information for private companies to learn about the potential impacts of adoption of the lease standard. In this report, we focus on lessons learned from current adopters of the lease standard and related technical accounting matters. Specifically, we focus on the impact to lessees related to:
“Unanticipated cost and complexities” and demand for lease software
Transition: journal entries for all
Transition: method
Transition: practical expedients- considerable nuances
Practical expedients- segregating lease and non-lease components
Discount rate determination
Additional disclosures