4 Steps to Implementating the New Lease Accounting Standard

After numerous delays, ASC 842 became effective for private companies and not-for-profits for years beginning after December 15, 2021. Entities that prepare financial statements in accordance with GAAP will be required to fully implement the requirements, which include the recognition of right-of-use assets and lease liabilities on their balance sheets, for their 2022 financial statements. […]

Lease Accounting Adoption Is Near

If your organization has not already adopted lease accounting, the clock is ticking. The amendments are effective for fiscal years beginning after December 15, 2021, meaning that nonpublic companies must adopt the new rules with an effective date of January 1, 2022. Summary of the Changes The most significant change from existing guidance is the […]

Revenue from Contracts with Customers and Leases Implementation Deadlines Extended

Acknowledging the unprecedented impact of Covid-19 and the disruption it has caused for businesses and capital markets, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-05 to provide immediate, near-term relief. Officially, ASU No. 2020-05 extends implementation of the new revenue recognition and lease accounting standards by one year for certain […]

Lease Accounting and CECL Implementation Dates Extended

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Up to this point, US GAAP’s new lease accounting rules for non-public filers were to be applied for annual periods beginning after December 15, 2019. Yesterday, however, the FASB voted to extend the non-public company implementation date for the new lease accounting rules for one additional year.  This would make the new standard effective for […]

Governments Should Prepare Now for Lease Accounting Changes

What is the impact of Governmental Accounting Standards Board (GASB) 87? GASB 87 brings all long-term leases (those longer than 12 months) onto the statements of net position of governmental entities. This stands to have a large impact on financial reporting for governments that participate in leases either as a lessee or lessor. The new […]

Updates to the Revenue Recognition & Lease Accounting Standards

Now that the year-end and quarter-end closes are behind us, many accounting departments are starting to focus on the recent or upcoming accounting standard changes. For example, public companies addressed the initial revenue recognition updates at the end of fiscal 2017, but private companies are looking at the looming 12/31/18 deadline. Lease accounting standard changes […]

8 Things You Need to Know about the New Lease Accounting Rules

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Accountants have been taught since the mid-1970s to review executed lease contracts for any one of four criteria that would dictate whether a lease contract is to be categorized as a capital lease or as an operating lease. While those four criteria are specific, seemingly similar lease contracts are, in fact, being treated differently within […]

Examples of New Operating Lease Treatment

To illustrate the amendments included within Accounting Standards Update 2016-02: Leases, we have developed the following examples. Due to the variety of lease contracts that can exist, these examples are not intended to be all inclusive. Additional examples, however, can be found within Topic 842 of the FASB Accounting Standards Codification. Example 1 The company […]

The FASB’s new lease requirement standards could impact your Financial Statements

The Financial Accounting Standards Board (FASB) has issued its long-awaited update revising the proper treatment of leases under U.S. Generally Accepted Accounting Principles (GAAP). Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), will affect companies that lease real estate, vehicles, construction and manufacturing equipment, and other assets. The standard requires these businesses to recognize […]