Keeping the Audience Engaged . . . and Informed on ASC 842 Lease Accounting

Have you ever presented technical information to a large audience?  If so, what were your objectives?  As I prepare for a technical training session on Lease Accounting, these questions are in the forefront of my preparation.


I have three objectives.  First, I want the audience to walk away more informed than when they arrive.  Second, I hope to create a new perspective on the technical support they can utilize to adopt the accounting standard.  And finally, a slightly different objective, is that I don’t put the audience to sleep with a highly technical discussion.

While I joke about keeping the audience awake, it is something I actually take very seriously.  Being married to a teacher, I understand the importance of keeping topics relevant but also exciting.  We have to keep our audience engaged so that will leave better informed and more prepared to adopt the technical nature of the accounting change.

Topic:  ASC 842

On September 27th, ESRP will sponsor a lunch & learn on ASC 842.  I will sit on a panel with Montgomery, Coscia & Greilich (“MCG”) and Conexus.   MCG will have the primary responsibility of conveying the technical requirements, while Conexus and ESRP will identify solutions and approaches to adopting the new standards from a process and technology standpoint.  We will point out the differences between the existing standards and the new leasing standards.

Technical topics include the effective date of adoption for publicly traded companies and non-public business entities, as well as the financial statements which must be re-stated for comparative purposes.  Virtually all leases will be placed on the balance sheet as a right-of-se asset and related liability.  Additionally, we will cover what financial statements are impacted by ASC 842.

In looking at ASC 842, it is noted that the definition of a lease has changed and requires evaluation of three criteria for all arrangements:

  • An arrangement is or contains a lease if it conveys the right to control the use of an identified asset
  • For a period of time
  • In exchange for consideration

MCG will take the audience through the rest of the technical presentation identifying key requirements of the new standard and financial statement presentation.


ESRP will be there to provide expertise and communicate the importance of data gathering, building processes and procedures, as well as selection of databases for a systematic approach to providing the opening balance sheet entries and the monthly amortization and journal entries.  We will focus on companies which have a large real estate portfolio, which is good because that is our business.  Finally, we will talk about some of the nuances we have seen in implementing lease administration systems and outsourced programs for our many clients.


I’m personally looking forward to the event and sharing my expertise.

Will I achieve my three objectives?

I know they will walk away with more information than they had when they arrived.  We will give them a new perspective – and – yes, with the thought-provoking application, I am sure they will stay engaged – however, I’ll report back in a later blog.