The Pandemic Effect on the Lease Accounting Standard 842

If there is any one thing we can thank the pandemic for, it is the delay in the Accounting Standard Codification Topic 842 (ASC 842).  Public companies and some not-for-profits with public debt were required to incorporate this new lease standard back in 2019, while private companies and other not-for-profit entities will once again receive a reprieve. 

Not-for-profits holding public debt that haven’t issued statements reflecting the adoption of ASC 842 can delay until fiscal years beginning after December 15, 2019.  This pandemic-related delay means that for these not-for-profit entities, reporting would be required for most fiscal years starting in 2020.  Many of these entities benefiting from the delay are hospitals and universities.

Private entities and not-for-profits without public debt will be required to start adoption in fiscal years starting after December 15, 2021.  So take a breather, the reporting burden isn’t going to start until the fiscal year starting in 2022 for these entities. Do not wait too long though because the delay is not only because of the pandemic but also because of the time and effort in the adoption of ASC 842. 

As you look towards adopting this standard, Schneider Downs can help with your lease accounting needs.  We have staff available to train your personnel on the guidance and help develop organizational procedures in relation to leases, and we have software available to manage, track and create your lease accounting entries.  Contact Jason Reljac at 412.697.5483 or [email protected] to find out more.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2023 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
Understanding Coronavirus State and Local Fiscal Recovery Funds Audit and Reporting Requirements
Understanding Leases In Technology Arrangements
Six Common Lease Accounting Adoption Mistakes... and How to Avoid Them
Lease Accounting – Top Industry Considerations and Challenges of 2023
Changes to Accounting for Leases Under Common Control
Lincoln College Closes Due to Ransomware Attack
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.