Updates
As it looks like it might actually now happen, we thought it was a good time to revisit an article we wrote back in 2019, which delved into some pretty significant accounting regulation changes which could affect all mortgage banks, but especially branch heavy retail lenders.
Having recognized some major holes in ASC 840, the new leasing account standard, ASC 842 (Topic 842) was proposed by FASB and is now finally set to come into force later this year. As you are probably well aware, the date for this new leasing standard has been pushed multiple times for private and nonprofit organizations due to the COVID-19 pandemic, and other reasons. This is all coming to a head as we reach the second half of 2021. Depending on when your year ends, the effective date could be as early as January 2022.
As stated in our post back in 2019, ASC 842: How to Navigate the New Lease Changes, these changes, if not properly prepared for, will cause challenges to accounting departments as they scramble to ready in time. The biggest issues we have seen so far as our customers prepare is not so much the accounting piece itself, but the gathering of all the lease information needed to be properly organized and ready.
So what are the most crucial first steps in getting ready for ASC 842?
When you begin working through these updates, be sure to contact your auditor for any questions as they will have this information and how to best prepare for the impending changes under ASC 842. As always, Loan Vision is indeed here to help with this change should you be interested, as we do offer a Lease Management Module (check out the webinar here), but we are certainly not the only option out there.
If you aren’t doing so already, follow Loan Vision on LinkedIn and keep an eye out for upcoming webinars and information. If you are a current customer, check out our monthly Tips & Tricks & Refresher webinars designed to help you get more out of the Loan Vision system, and don’t forget to join our Loan Visionaries group on LinkedIn!
Sources:
Arnold, K. (2021, July 23). ASC 842 Lease Accounting Summary, Effective Dates, & More.
EZLease. (2021, July 15). ASC 842 – Compliance, Deadlines & Handbook. https://ezlease.net/asc-842/
LeaseQuery. https://leasequery.com/blog/asc-842-summary-new-lease-accounting-standards/
Pavelka, J. (2020, December 1). ASC 842: How to Navigate the New Lease Changes. Loan Vision. https://loan-vision.com/resources/blog/asc-842-how-to-navigate-the-new-lease-changes/
As the Director of Sales & Marketing at Loan Vision, Carl Wooloff’s responsibilities include new business, overseeing marketing efforts, and working with existing customers. What Carl loves most about Loan Vision is being part of a successful, well loved company and the relationships we forge with our customers. When Carl is not at Loan Vision, he enjoys spending time with his very tolerant wife and 3 wonderful children, cooking, and sports.
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