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 […]