On February 25, 2016, FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under the new standard, companies must record an asset and a liability on the balance sheet for nearly all leases. Office space, equipment, automobiles and other items that are leased will now be reflected on the balance sheet. This marks the start of a new era in accounting, causing lenders and other users of financial statements to adapt to a redefined set of liabilities.
Assessing the impact of the ASC 842 new standard for accounting for leases may be a somewhat daunting task for companies with hundreds (or even thousands) of leases. The new standard applies to embedded leases, which adds complexity to the transition. Many contracts that may not be considered a lease contain embedded lease arrangements. Assembling a schedule of leases and assessing them may require special software to even begin understanding the accounting implications.
The Accounting Advisory team at Frazier & Deeter can help your company make the transition to the new lease accounting ASC 842 standard.
Call us today to schedule a Lease Accounting Assessment Session with our technical accounting team.
On October 16th, the FASB unanimously approved an additional delay for private companies on three major upcoming standards, including Leases (Topic 842), Financial Instruments – Credit Losses (Topic 326), and Derivatives and Hedging (Topic 815). While the credit losses and…
Join the accounting experts at Frazier & Deeter to learn about the new standard for accounting for leases (ASC 842) and pragmatic considerations for successfully adopting the new standard. Whether you are a public company with the deadline coming up…
Sean Lager, Audit Partner at Frazier & Deeter and member of AICPA’s Technical Issues Committee explains the changes to lease accounting. He also describes how public and private companies are impacted by these changes. Untangling the Technical is available on iTunes and Google…
