Performed full adoption of ASC 842 leases for a privately-owned energy company with approximately 150 leases. The work for this engagement included reviewing and evaluating over 600 contracts, including complex arrangements with last-mile pipeline, sale-leaseback terms, and build-to-suit transactions, extraction and assessment of all terms, implementation of new lease accounting software, including API to GL system, determination of Incremental borrowing rate, and design and implementation of internal controls to support adoption and ongoing lease accounting.
Additionally, our Stout team provided journal entries required to record the right-of-use assets and lease liabilities, documentation to support practical expedients elected and conclusions on certain complex contracts, drafted new disclosures required by the standard, reconciled reporting under the new standard to reporting under current debt covenants (i.e. covenants still written to consider leases under ASC 840), and custom reports for operational decision making on lease renewals and negotiations.
Note: This work was performed prior to joining Stout.