Just in case you were starting to wonder if Embark was, well, all bark but no bite, we’ve decided to provide you, our financial compadres, some roll-up-your-sleeves handy work if you happen to have some questions regarding ASC 842.
While you’ve heard us proclaim from the mountaintop about the significant changes to lease accounting standards brought about by ASC 842, it’s one thing to discuss those changes but something entirely different to see them in action. For all of you lessees out there with those lingering questions or concerns, Embark’s spiffy new ASC 842 Lease Classification Template provides you with much-needed answers.
A Cornucopia of Lease Accounting Delights
Our spreadsheet walks you through the testing requirements step-by-step, providing you the pertinent sections of the new standards as you go. It’s straightforward, simple, and most importantly, thorough enough to give a true sense of guidance. We discuss and demonstrate the intersection with ASC 606, the new revenue recognition standards, to isolate revenue considerations for various leasing agreements. Given the pervasiveness of leases in today’s landscape, we just figured a concise spreadsheet that doesn’t look like the blueprints to the Hubble Telescope -- but still providing impactful, real-world insights -- was sorely needed. Ask and ye shall receive.
Also, much like seafood and white wine or PowerPoint presentations and high doses of caffeine, our spreadsheet is meant to be paired with our Lessee’s Quick Guide to the New Lease Standard ASC 842 -- including the ever-important adoption timelines -- and extremely convenient Comparison Chart that highlights the differences between the old and new standards. With everything we’ve provided, we hope you have a better understanding of the new standards for lessees, are far less nervous about them now, and proceed with confidence. And as always, your financial friends at Embark are here to help guide the way.