1. Financial Statements & Ratios
Assess the number and value of leases to be included on the balance sheet and determine the impact on financial ratios.
Assess the number and value of leases to be included on the balance sheet and determine the impact on financial ratios.
Assess the existing debt covenant thresholds and guidelines. Evaluate if there is any protection against changes to financial ratios due to shifts in standards.
Lenders need to assess the impact the standards will have on their customers. The lender’s staff needs to understand the standards and their requirements.
This is a brief introduction to ASC 842. For more detail on the technical accounting as well as how companies can successfully achieve and maintain compliance with the standard, download our full ASC 842 Handbook.