ASC 842 became effective for fiscal years and interim periods beginning after December 15, 2018.
Initially set for fiscal years beginning after December 15, 2019, implementation deadlines were extended multiple times due to complexities and challenges posed by the COVID-19 pandemic. Ultimately, the effective date for private companies and nonprofits was fiscal years beginning after December 15, 2021.
Awareness and adherence to the effective dates of ASC 842 are crucial for compliance, audit readiness, and accurate financial reporting. Organizations that fail to implement ASC 842 by the required deadlines risk regulatory non-compliance and potential financial inaccuracies.
ASC 842 took effect for public companies starting after December 15, 2018, and for private companies and nonprofits beginning after December 15, 2021. Timely compliance is essential for financial transparency, regulatory adherence, and effective lease management.