Day 2: Why the Real Risk Starts After the Deadline
Most companies view lease accounting compliance (ASC 842 / IFRS 16) as a one-time mountain to climb. They call this "Day 1"—the sprint to get every lease onto the balance sheet by the deadline.
But the real financial danger doesn't happen on Day 1. It happens on Day 2.
What is Day 2?
Day 2 is simply the rest of your life with these new accounting rules. It is the ongoing, daily effort required to keep your records accurate after the initial project is finished.
If Day 1 is like moving into a new house, Day 2 is the maintenance required to keep the roof from leaking.
Why Day 2 is the "Danger Zone"
Once the initial deadline passes, many firms relax their oversight. This is when profit erosion begins to creep in through three main gaps:
The New Lease Trap: New leases are signed, but because the big project is over, they aren't added to the ledger with the same forensic precision as before.
The Modification Mess: A lease is renewed, terminated, or a square footage change occurs. If these aren't remeasured immediately, your financial statements become inaccurate.
Data Drift: Without regular forensic monitoring, your digital software and your actual lease contracts start to drift apart. What was accurate six months ago may no longer reflect your actual portfolio today.
The Forensic Solution
At Lease & Ledger Advisory, we focus heavily on Day 2 Stewardship. We don't just help you cross the finish line; we build the frameworks to ensure your data stays Audit-Ready every single day that follows.
