ASC 842 Not Adopted: Significant Peer Review Consequences

The FASB Post-Implementation Review (PIR) of ASC 842, Leases, indicated that initial and on-going costs associated with the standard were “significantly higher” than anticipated. The PIR attributed this primarily to “existing systems and processes [that] were often not able to account for operating leases on the balance sheet.” As the first sets of complete peer review data become available, we note growing evidence of continued difficulties among small CPA firms and their cost-sensitive clients to change processes to accurately