To help federal agencies with the adoption of SFFAS 54, our team can assist on all aspects of the implementation including: 

  • Conducting the preliminary impact assessment 
  • Analyzing and categorizing existing leases
  • Establishing policies and procedures for ongoing lease activity
  • Addressing technology and infrastructure requirements
  • Project management

Our team will also come up with a detailed plan that will focus on potential challenges and risks along the way.

Adopting the Federal Lease Accounting Standard

The new federal lease accounting standard (SFFAS 54) is bringing most leases onto lessee balance sheets. With the implementation deadline here, federal agencies should consider seeking out assistance in understanding and executing its implementation efforts:

  • Project management
  • Technical accounting, including embedded leases, discount rate estimations, etc.
  • Data collection
  • Understanding impact to processes, procedures, and internal controls
  • IT system selection
  • IT system implementation and interfaces

The level of effort required to implement the new standard depends on the size of an agency’s lease portfolio, the complexity of its business, and the relative importance of its leased assets. CohnReznick works to deliver tailored solutions to efficiently address each of our clients’ needs when transitioning to the new standard. Our scalable approach can reduce the time necessary for implementation to extract critical data from lease contracts.

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Understanding lease accounting for federal entities

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Federal lease accounting standard: Challenges for federal agencies

Contact

  • bill hughes
    Contact Bill Bill+Hughes bill.hughes@CohnReznick.com
    Bill Hughes

    CPA, CDFM, CGFM, CGMA, CICA, Partner - Federal Market Leader

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