Checklist for ASC 842 Compliance

Getting Started

  • Assemble strategic team to set out requirements, goals, and timelines
  • Establish contact with other executives who might be relevant to the transition process
  • Share the likely impact of the implementation of ASC 842 with relevant stakeholders
  • Engage with auditors as early as possible

Evaluate solutions

  • Evaluate solutions
    • Ensure chosen solution contains latest available features such as OCR (optical character recognition) and AI-enhanced automation capabilities
    • Ensure solution chosen is automatically updated with ongoing changes to ASC 842
    • Confirm that technology solution chosen will save your team time and effort, and not cost additional time and effort
  • Establish timeline for training on new accounting software

Final Steps

  • Finalize the company’s relevant accounting policies
  • Establish the necessary internal controls – such as approval for new leases, and internal communication regarding possible lease modification
  • Perform the primary technical accounting analysis, including calculating and documenting the Incremental Borrowing Rate (IBR)
  • Create new ledger accounts
  • Gather all lease contracts and contracts that may contain leases, per the standard’s definition
  • Re-engage with relevant executives and departments heads regarding the potential for leases that may have been missed, such as embedded leases
  • Go over ledger accounts for evidence of any leases that may have been missed (such as regular expense payments)
  • Upload leases into relevant lease accounting platform
  • Double-check all journal entries
  • Ensure satisfaction with disclosure (both qualitative and quantitative)
  • Schedule time for post-implementation review to ensure ongoing compliance
About Trullion.
Leveraging software to create added value for clients and firm talent retention
Streamline ASC 842 workflows
Trullion automates ASC 842 workflows to ensure compliance, eliminate error and streamline operations in a fraction of the time it would take without Trullion’s game-changing lease accounting software in place.
Automate data extraction
The Trullion platform automatically extracts data from source documents such as Excel files and PDFs to perform lease analysis, simplify journal entries, and create a clear audit trail that’s accessible to both your internal team and external auditors.
ERP Entries & Dynamic Reporting
Trullion is enhanced by OCR-powered AI to read and understand leases and sales agreements in any format and translating them into a live 360° data image of your transactional workflow.