When ASC 842 launched, it delivered the most transformative change in lease accounting in decades. Moving from ASC 840 to ASC 842 reshaped how leases are recognized, measured, and reported. Over the years, National Lease Advisors have guided numerous clients, including public companies since January 1, 2019 and private companies since January 1, 2022, through this shift. Here’s what we’ve learned:
1. Centralized, Clean Lease Data Is the Foundation
Lease data often lives in silos: PDFs, spreadsheets, outdated systems. A successful ASC 842 rollout starts with a centralized, standardized lease repository. Clean and validated data streamlines calculations and boosts reporting accuracy.
2. Implementation Must Be Cross‑Functional
ASC 842 touches more than accounting, it spans real estate, legal, procurement, and IT. The most effective deployments involve cross-functional teams from day one. Our role? We bridge communication gaps and align stakeholders to ensure a seamless rollout.
3. Technology Enables, It Doesn’t Replace
Lease accounting platforms are vital, but not a cure-all. They only deliver value with structured workflows, accurate inputs, and ongoing oversight. Our focus has been on helping clients choose the right systems and weave them into daily operations.
4. Continuous Compliance Is Ongoing
ASC 842 doesn’t end at initial adoption. Lease modifications, renewals, and terminations demand constant attention and remeasurement. We have built processes such as lease modification checklist, cross-team communication, and refresher training to maintain compliance year-round.
5. Strategic Remeasurement Procedures Deliver Real Value
A major insight: successful clients use reliable procedures for lease remeasurement, not just compliance checklists. That means:
- Clearly defining triggers (e.g., term changes, rate shifts, modifications)
- Using consistent methods to reassess discount rates, lease terms, and classification
- Documenting changes and reflecting them smoothly in financials
These practices prevent restatements, ensure audit ready data, and unlock granular insight into lease dynamics.
How National Lease Advisors Supports Your ASC 842 Strategy
With ASC 842 fully adopted for public companies since January 1, 2019 and for private companies since January 1, 2022, organizations are shifting their focus from basic compliance to long-term strategy. At National Lease Advisors, we help clients not only meet the requirements of ASC 842 but also unlock the strategic value hidden in their lease data.
From implementation to ongoing maintenance, our team supports clients by:
- Identifying and abstracting all relevant lease data, including embedded and non-traditional leases.
- Classifying leases and calculating right-of-use (ROU) assets and liabilities, with remeasurement for modifications or renewals.
- Preparing monthly journal entries, disclosure tables, and reporting packages that integrate with your general ledger.
- Providing rollforwards, summaries, and financial statement disclosures required under ASC 842.
- Maintaining ongoing communication with your accounting team and delivering ad-hoc support for audits or reviews.
Whether you’re optimizing existing workflows or navigating complex remeasurements, we provide the systems, structure, and support to move your lease accounting from reactive to strategic.
Ready to Elevate Your Lease Accounting Strategy?
Whether you’re still implementing ASC 842 or working to strengthen ongoing compliance, National Lease Advisors brings the expertise, tools, and processes to support your goals. Let’s talk about how we can streamline your lease administration and help you unlock the full strategic value of your lease portfolio.