New Lease Accounting Standards: Changes & Complexities for the Hospitality Industry
There’s no better time to plan for the new FASB lease accounting standard, Accounting Standards Codification (ASC) 842. This will have a significant effect on franchisees of hospitality companies, so it’s important to plan ahead and begin taking steps to implement the new standard. Under ASC 842, operating leases will now be capitalized on the balance sheet as a right-of-use asset and a lease liability. This can affect things like your borrowing capacity and debt covenant compliance.
In this video, you’ll learn the following:
- What should I do now to prepare for the new standard?
- How do I account for leases with complex terms and modifications?