We performed full adoption of new lease guidance ASC 842 for public company with approximately 175 leases, including the following elements:

  • Data extraction and assessment of all non-standard lease terms
  • Implementation of lease accounting software, including independent recalculation
  • Determination of the appropriate incremental borrowing rate
  • Derecognition of the built-to-suit lease portfolio and determination of new lease classifications
  • Comprehensive evaluation of contracts to identify embedded leases

We provided the journal entries required to record the right-of-use assets and lease liabilities, accounting documentation to support their completeness and accuracy, and a comprehensive memo outlining the considerations and conclusions. We also drafted new disclosures required by the standard and worked with management to assess the new key controls required for Sarbanes-Oxley (SOX) compliance. 

Note: This work was performed prior to joining Stout.