The new FASB’s accounting standard for Leases (Topic 842) brings big changes to the balance sheet, impacting all companies across all industries that have leases. To achieve compliance with ASC 842, companies will have to make significant effort to change their lease management processes and systems. The implementation of ASC 842 requires time, careful planning and execution. It will directly impact the financial performance, internal processes and even the value of the company, not just reporting and compliance. However, with the right system and expertise in place, ASC 842 compliance can be much easier.
One of the most important steps is to understand the nuances of the new lease accounting standards as well as to have the estimate of possible impact on your financial statements. In order to do that, certified lease accounting experts from SOFT4 team designed a “sandbox” tool – ASC 842 lease accounting calculator which you can use to perform your calculations. We used this calculator in testing our comprehensive lease accounting software package. Before this, the ASC 842 calculator was tested against calculation samples published by well-known consultancy companies (Deloitte, PWC, Ernst & Young).
Download our free ASC 842 lease accounting calculator and calculate the accounting impact of leases under new lease accounting standard US GAAP (Topic 842).
NOTE: This Excel-based ASC 842 lease accounting calculator is suitable for companies that have up to 100 lease agreements. As we all know, even though Excel is a fantastic tool, the functionality of excel based calculator is limited. For greater lease portfolios or companies having complex lease agreements (e.g. variable leases, leases in foreign currency, etc.), we recommend considering a more sophisticated software solution. Like our Soft4Lessee, designed for companies with hundreds or thousands of operating leases. Our customers use Soft4Lessee to accelerate the implementation process and get ready for compliance right and on time. Simplify your transition and prepare financial statements in accordance with ASC 842. Try our lease accounting solution for free here.