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Manufacturing

Manufacturing co. needs the 411 on complying with ASC 842​

Key metrics:
  • Successfully implemented ASC 842 with implementation memo accepted by auditors ​​​
Value levers pulled:
  • Technical accounting advisory​
  • Audit readiness and financial statement preparation​
  • Controller support and process optimization

Picture this...

You’re an industrial and manufacturing company that has just been acquired by a PE fund. You need to adopt the new lease guidance (ASC 842) from the acquisition date onward. You have more than 3 office space leases, several vehicle leases, and various month-to-month copier and server leases. You need to figure out the appropriate accounting plan of action—and you need help doing so. ​

You turn to Accordion.

We partner with your team to determine the right accounting under the new lease guidance—including effects on purchase price accounting, best lease accounting practices, and controls after implementation. We: ​

  • Review and summarize terms and conditions for the leases to support the preparation of journal entries. ​
  • Identify embedded leases and prepare an accounting memo.​
  • Obtain business requirements and select a cost-effective lease accounting software. ​
  • Calculate amortization schedules and journal entries for the required ASC 842 transition as of the acquisition date. ​
  • Draft the required disclosure footnote for inclusion in the year-end financial statements. ​
  • Ensure proper accounting for unfavorable lease terms existing at the acquisition date under ASC 842 and review the ROU real estate assets for impairment. ​
  • Provide staff training. ​

Your value is enhanced.

You successfully implement the new lease accounting guidance starting from your acquisition date, using appropriate practical expedients and ensuring the completeness of the lease population. Following our recommendations, you implement best practices for accounting and controls over new and modified leases.​

The auditors accept your ASC 842 implementation memo along with your financial statement disclosures.

​

Enhanced value:

You reap multiple benefits, including:

  • Successfully implemented ASC 842 with implementation memo accepted by auditors​​​