FASB’s new lease standard requires lessees to recognize all leases with terms greater than 12 months on their balance sheet as lease liabilities with a corresponding right-of-use asset. After deferrals, this new standard is effective for fiscal years ending on or after December 31, 2022 for all private companies and private nonprofits. Host Damien Martin caught up with FORVIS’ John Kmetz and Phil Laminack to discuss the new standard and share tools and guidance for both the accounting and tax considerations for companies starting the implementation process. Here’s what they cover:
- Get to know John and Phil @01:17
- The new lease accounting standard @03:40
- Adopting the standard @06:14
- Tax considerations @08:51
- Tax planning & traps for the unwary @12:16
- Advice for adopting & discussing the standard with stakeholders @16:01
- How to get some help @20:25
- Lessons learned from those who have already adopted the standard @23:53
- Closing thoughts & ways to learn more @25:13
CONTACT INFORMATION FOR OUR GUEST
John Kmetz is the national leader for FORVIS’ private equity team. He has more than 20 years of experience performing financial statement audits of public and private companies in the manufacturing and distribution, service, retail and technology, and software industries. He is knowledgeable of enterprise resource planning systems and control environments and oversees a variety of attest and advisory engagements related to acquisitions, revenue recognition, and stock-based compensation accounting.
He works with multinational companies and before joining FORVIS, gained international experience while fulfilling a two-year assignment in Amsterdam, the Netherlands. In addition, he worked in the national office of a large international accounting firm, where he was responsible for developing and applying its assurance policy and methodology.
Phil Laminack is a director with FORVIS and leads the firm’s national Tax Accounting Services group. He has extensive experience overseeing the tax provision function for complex, multinational organizations, both public and private. Phil is a frequent conference speaker and panelist on topics related to ASC 740. He’s been published in The Tax Advisor® and served as a presenter for the AICPA’s National Advanced Accounting and Auditing Technical Symposium. Phil also works extensively in the area of tax planning and analysis related to mergers, acquisitions, and divestitures.
ADDITIONAL RESOURCES
- Webinar: Implementing Leases: A Practical Approach, Challenges & Opportunities (October 6, 2022)
- Resource center: FORVIS Lease Accounting Resource Center
- Podcast: Simply Tax Episode 86: Tackle the New Lease Standard (February 3, 2020)
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