FASB Guidance requires the following Lease Accounting classifications to be identified for Financial Reporting:
The Lessees to classify leases as either Finance or Operating lease based on executed and approved lease agreements.
The Lessor to classify leases as Direct Finance, Operating Lease, or Sales-Type based on the executed and approved lease agreements.
All Private Business entities are required to be FASB ASC 842 compliant by December 15, 2021 (Fiscal Year), and December 15, 2022 (Interim Period within).
Gather up all your leases in a centralized database
Assess the details of each lease for key reporting characteristics
Setup reports needed for filing
Ensure you are audit ready
Consider an early review with your auditors and credit providers