Private companies, not-for-profit organizations, and smaller reporting companies received welcome news recently when it comes to adopting complex accounting standards. The Financial Accounting Standards Board (FASB) issued two proposals that would delay the effective date for major accounting changes: one that affects lease accounting, current expected credit loss (CECL), and hedge accounting and a second that affects long-term insurance contracts.
Topics: private companies, Patrick Quinn, lease accounting changes, Lease Standards, leasing standard, Leases
Late in 2018, the Financial Accounting Standards Board (FASB) released minor changes to lessor accounting designed to make adopting the new leasing standard easier. As lessors begin making the required changes to their lease accounting, they will want to ensure they have factored these updates into their implementation plans.
Topics: lease accounting changes, Leasing, leasing standard, ASC Topic 606, Leases, Thomas McGauley
The new leasing standard under ASC Topic 842, Leases, brings changes to key terminology and accounting for leases for both lessees and lessors. Under the core principle of ASC Topic 842, a lessee will recognize right-of-use assets and related lease liabilities on the balance sheet for all leases, except for short-term leases for which the recognition exemption is elected. Public companies must adopt for fiscal years beginning after Dec. 15, 2018 (generally the 2019 calendar year). All other entities will adopt for fiscal years beginning after Dec. 15, 2019 (generally the 2020 calendar year).
Topics: lease accounting changes, Leasing, leasing standard, asc topic 842, Leases, Thomas McGauley
The effective date of the update to lease accounting is drawing closer. In this blog, we will discuss lease modification and the transition guidance. To prepare for the standard, entities should be evaluating their adoption process and how it will affect their operations.
How leases are transitioned to the guidance under FASB ASU 2016-02, Leases (Topic 842) will depend on the types of leases in place at the date of adoption and whether electing available practical expedients makes sense for the organization.
Topics: Larry Kaplan, lease accounting changes, Lease Standards, Leasing, Leaseback Accounting, leasing standard
The leasing standard changes unveiled with the Financial Accounting Standards Board (FASB) Accounting Standards Update No. 2016-02, Leases (Topic 842) will change the way many organizations account for their leases. In addition to modifying the lessee and lessor accounting models, the new standard also introduces changes to the accounting model for sale-leaseback transactions, as well as other leasing concepts. Organizations with leasing arrangements should take note of how the changes will affect their lease accounting processes.
Topics: Larry Kaplan, lease accounting changes, Lease Standards, Leasing, Leaseback Accounting, leasing standard
Topics: Larry Kaplan, lease accounting changes, Lease Standards, Leasing
The Financial Accounting Standards Board (FASB)'s new leasing standard, released February 25, 2016, brought several changes to lease accounting. While not all of the changes will mean significant updates to existing U.S. generally accepted accounting principles (GAAP), they will require entities with leasing arrangements to adjust their current practices.
Topics: Larry Kaplan, lease accounting changes, Lease Standards, Leasing
Lease accounting received an accounting overhaul with the recent release of the Financial Accounting Standards Board (FASB)'s Accounting Standards Update 2016-02 Leases (Topic 842). The new standard most significantly changes lessee accounting compared to existing US GAAP, but also has some targeted changes for lessor accounting. Overall, ASU 2016-02 seeks to improve transparency to the economics of lease transactions and bring lease accounting into line with other recently released accounting standards updates, such as the changes to Revenue from Contracts with Customers (Topic 606).
Topics: FASB, lease accounting changes, David Lewin, Lease Standards
Leasing assets is very common in a variety of fields, and for many companies that need certain assets, such as trucks, aircraft, real estate, manufacturing equipment and the like, leasing is key. Existing accounting models have been criticized by financial statement users for providing an incomplete picture of a company’s leasing activities. In order to provide greater transparency and a more accurate representation of leasing transactions, the International Accounting Standards Board (IASB) and the Financial Accounting Statements Board (FASB) recently released a revised proposal regarding accounting for leases. While the revised proposal removes some of the controversial aspects of an earlier version, it would still lead to substantial change in lease accounting.
Topics: Paul Languirand, lease accounting changes