Keep up with the latest lease accounting news with this comprehensive list of announcements related to the standards. The links below provide the latest trade journal articles, technical accounting publications, research study findings, trainings, and certification courses.
Lease Accounting News
The Latest Media Coverage and Announcements for the New Standards
November 8, 2018
or year-end public company filers, the deadline to implement the new lease-accounting standards (ASC 842 in the U.S. and IFRS 16 internationally) is January 1, 2019—less than 60 days away. Most companies have been focused on collecting all the necessary lease data to achieve compliance, but that is only one piece of a successful transition. For those nearing implementation, here are 11 key issues to consider in the last 60 days.
October 28, 2018
What the retail industry needs to know about IFRS 16 on the balance sheet, profits, debt covenants, and more according to the Big 4. Subscription Required.
October 17, 2018
For year-end public company filers, the deadline to implement the new lease accounting standards (ASC 842 in the U.S. and IFRS 16 internationally) is on January 1, 2019 - less than 90 days away. Most companies have been focused on collecting all of the necessary lease data to achieve compliance, but that is only one piece of a successful transition.
October 11, 2018
A change in how companies account for leases is threatening to upend corporate-loan agreements and prompting finance chiefs to search for solutions.
Jeanne McGovern and Sean Torr
October 9, 2018
The new standard for lease accounting (Accounting Standards Codification 842) is intended to provide investors and other stakeholders with a more complete and transparent view of a US company’s financial position with respect to leasing activities.
October 3, 2018
Software firm LeaseAccelerator has published a checklist of 90 items companies can use to make sure they haven’t missed any important aspects of adopting the new rules under Accounting Standards Codification Topic 842.
September 19, 2018
[M]any companies are finding that the accounting for real estate assets is trickier than expected. There are three big challenges that companies with large real estate lease obligations are encountering when transitioning to the new standard.
September 12, 2018
FEI Daily spoke with PwC Partner Sheri Wyatt about the differences between implementing the revenue recognition and leasing standards, from system solutions to complexity to cost.
A recent PwC survey found that only 1% of companies had completed adoption of the new lease accounting rules. For the other 99%, we offer some lessons learned to date from companies that have already made substantial progress with their implementations to help smooth the path forward.
Most Finance & Accounting Leaders Still Need a Dedicated Software System for the New Leases Standards
September 4, 2018
Organizations are challenged to assess needs, design specifications, and oversee the implementation of new IT solutions, and time is running out. According to new research by Deloitte, most finance and accounting leaders plan to finalize the design of required changes by mid-year 2018 and complete implementation by December 31, 2018.
Things You Should Do to Prepare for the Effective Date of the New Leasing Standards--With Limited Time Left to Implement
August 27, 2018
We are counting down to the effective date for the new lease accounting standards, but if you are not fully prepared for the implementation, don’t worry you are not alone.
Norman Strauss, Marc Siegel, Mark LaMonte, Amie Thuener, Scott Taub, and Prabhakar Kalavacherla
The panel began with Siegel outlining FASB’s development of the long-gestating lease accounting standard. “The idea was to try to take operating leases, which traditionally … have been added back to the balance sheet using the disclosures, and try to make that a little bit easier by actually presenting them on the balance sheet through recognition and measurement.”
August 13, 2018
The Financial Accounting Standards Board is proposing to make a number of narrow improvements in the lease accounting standard as public companies get ready for it to take effect at the end of the year.
August 13, 2018
Simply finding existing leases and extracting the necessary data is more time-consuming than many companies anticipated. However, there are some steps companies can take to optimize their data collection process.
August 11, 2018
Aiming to bring more transparency to leases in companies’ financial statements, the new standard will not only impact finance and accounting but will also result in major changes in data processing and related processes.
August 1, 2018
Of the 100 companies whose disclosures we evaluated, more than three-quarters have determined that the new lease-accounting standard will have a material impact on their balance sheets, but few have provided a quantitative estimate of it.
July 30, 2018
FASB has issued targeted changes to its new lease accounting standard that are designed to make implementation easier and reduce costs for financial statement preparers.
July 23, 2018
At the 5th CFO Innovation Forum in Manila in June, Shahzad Mahmood had sage advice to the finance professionals in attendance. Don’t underestimate the impact of IFRS 16: Leases on your financial statements, he warned.
Bill Maloney, Udit Sharma and Patrick Garrett
July 23, 2018
Can companies unlock certain operational benefits, thereby reducing costs and increasing the bottom line, as part of adopting this new guidance? In a word: Absolutely.
July 19, 2018
FASB issued 16 minor amendments to its new lease accounting standard Thursday, clarifying rules and correcting application of guidance that the board had not intended when it created the standard.
New SEC Disclosures Show Major Impact to Balance Sheets From New Lease Accounting Standards, What Companies are Doing About It
July 17, 2018
These companies have hundreds to thousands of leases to analyze, a time-consuming process. Despite the scale of the project, of the 100 companies analyzed, 82% of companies were able to conclude that there would be material impacts to the company balance sheet.
June 20, 2018
Jonathan Crawford, chief technology officer at LeaseAccelerator, has been seeing some problems with the leasing standard, which is far less converged than the revenue recognition standard.
June 6, 2018
First of all, Torr said, companies need to keep in mind that they are not just looking for a “one-time” implementation tool, they are looking for a long term solution.
May 30, 2018
With the effective date for the new lease accounting standard taking effect at the end of the year for public companies, many are finding themselves unprepared and their accounting systems in need of an upgrade.
Differences between the FASB and IASB lease accounting standards, and how companies can prepare for both
May 24, 2018
While the standards are similar in many ways, FASB and IASB failed to converge on several key points that will create changes in the accounting processes. Here’s what U.S. based companies reporting internationally need to know about that other set of standards, IFRS 16.
April 25, 2018
The biggest mistake we see companies make as they initiate their accounting projects is underestimation. Whether it is the business assessment to determine new leasing processes, the level of internal and external resources required to execute a global business transformation, or the investment associated with a system fully capable of performing lease accounting compliance, the simple fact is that the budget needed for the lease accounting project is bigger than you think.
April 24, 2018
The new rules require companies to record liabilities for operating leases on their balance sheet for the first time ever. As the deadline draws closer, public companies are required to include a discussion of the potential future impact of the new rule on their financial statements. But many companies appear unprepared for the change, according to Michael Keeler, chief executive of LeaseAccelerator Inc., a provider of software-as-a-service, or SaaS, for enterprise lease accounting.
April 18, 2018
More than three-quarters of the top 100 U.S. companies with the biggest lease obligations expect to see a material impact on their balance sheet from the new lease accounting standard, according to a new report. The report, from the technology company LeaseAccelerator, analyzed a recent set of Securities and Exchange Commission filings related to the adoption of the leasing standard, also known as ASC 842, which takes effect for public companies at the end of this year.
April 11, 2018
However, as FASB notes, the new method only changes when a company has to apply the transition requirements. It does not change how the transition requirements are applied. Therefore, the new transition method is not a cure for the compliance burden created by ASC 842. In addition, it is not without its downside.
March 21, 2018
Big Four accounting firms, and other lease accounting experts have all determined that the standards will have minimal direct impacts on lessors. However, the standards will place a large administrative burden on lessees. The big question experts are asking is, will that burden cause companies with large lease portfolios to forego leasing in favor of purchasing their assets in the future?
March 20, 2018
Moody’s Investors Service Inc. is proposing changes to how it treats leases in response to new U.S. and international accounting rules, the credit ratings firm said on Monday. Public companies will be required to report operating leases on their balance sheets for fiscal years that begin after Dec. 15, 2018 under new U.S. accounting standards.
March 20, 2018
With year-end reporting and revenue recognition implementation nearly complete, public companies are preparing for their next accounting freakout—this time over leases. Recent polls suggest companies have a lot of work to do to get ready for the next big rule, Accounting Standards Codification 842 on leasing, which takes effect Jan. 1, 2019, for public companies. Subscription required.
March 13, 2018
The Financial Accounting Standards Board (FASB) has affirmed a new method of transition that eliminates the need for companies to provide comparative financial statements under ASC 842 for the prior two (2) years (i.e., 2017 and 2018). Instead, firms should present (continue to maintain) their disclosure for these years under ASC 840.
March 12, 2018
As organizations evaluate their leasing activities, many are realizing that most leasing activities are decentralized, with various groups managing the lifecycle of leasing in silos. This is causing leaders to think about Day 2 of the new leasing standard – i.e., maintaining compliance for the long term, not just for Day 1.
Sponsored by Genpact
March 5, 2018
The information deficit is widespread. Even Fortune 500 companies are substantially underestimating their lease totals, according to research from LeaseAccelerator, a leading provider of lease accounting technology.
By Tammy Whitehouse
February 26, 2018
Another recent survey on lease accounting shows some stress in the system as companies wrap up one huge accounting standard adoption and dig into the next one.
By Ranica Arrowsmith
February 26, 2018
Three quarters of companies find the new lease accounting standard set forth by the Financial Accounting Standards Board to be more complex than expected.
By Steven Fox
February 1, 2018
The impact of IFRS 16 is expected to be pervasive, and with the deadline approaching fast the need for clarity is paramount. Even for small to medium-sized businesses, the task of becoming fully compliant is intricate and labour-intensive.
By Liz Farr
January 30, 2018
In some cases, locating all of a company’s leases and extracting the data required to comply with the standard has been a serious challenge for financial statement preparers. Lerner’s group began planning the work in the summer of 2016 and is still working on it.
Financial Reporting Insights
January 30, 2018
There has been a lot of discussion about the SAB 74 disclosures related to FASB Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), but registrants are reminded to also provide transparent disclosure about progress toward implementation of ASU 2016-02, Leases (ASC 842).
By Ken Tysiac
January 25, 2018
FASB issued an Accounting Standards Update (ASU) on Thursday that clarifies the application of the board’s new lease accounting standard to land easements and makes adopting the leases standard easier for some land easements.
By Todd Cheney
January 19, 2018
Securities and Exchange Commission Chief Accountant Wesley Bricker said the agency will carefully watch how well companies disclose the impact of accounting rules that are approved but not yet implemented, required by Staff Accounting Bulletin 74.
By Michael Cohn
January 17, 2018
“The day 1 challenge is you’ve got to find all the data and you’ve got to put it in all the systems so you’ve got compliance. The day 2 challenge is really about staying compliant,” said Michael Keeler, CEO of the technology company LeaseAccelerator.
By Michael Keeler
January 16, 2018
The implementation dates for FASB’s ASC 842 standard are quickly approaching. Yet, most companies adopting the new standard haven’t even reached the halfway point in their implementation projects. However, there are a few early movers who have made significant progress in the transition, which begs the question – what lessons have they learned?
By David M. Katz
January 11, 2018
Instead of companies having to apply the requirements of the standard to their 2017, 2018, and 2019 balance sheets, FASB proposed last week that companies should have the choice to report “the cumulative effect” of the changeover in just their 2019 financials.
By Thomson Reuters Tax & Accounting
January 9, 2018
Companies adopting the FASB’s sweeping new lease standard would get a break on the transition process under a proposed change from the accounting board.
By Michael Cohn
January 5, 2018
The Financial Accounting Standards Board is proposing a new accounting standards update to reduce the costs of the new lease accounting standard and make implementing it a little easier.
By Denise Lugo
November 30, 2017
Companies adopting new lease accounting rules will likely get some relief from costs when shifting to the rules because of an option that U.S. accounting rule makers will provide. (Subscription Required).
By Michael Cohn
November 29, 2017
The Financial Accounting Standards Board decided during a meeting Wednesday to ease some of the implementation burdens and possible costs of the new lease accounting standard by making several adjustments and offering some practical expedients.
By Matthew A. Stallings
This article offers an example of equity valuation and examines the different results that arise from the new leasing standard effects that underlie adjustments to valuation model inputs and estimations.
By Ryan Drimalla
November 27, 2017
Complying with the new lease accounting standard will require collecting data from lease contracts across numerous locations and geographies.
By Olivia Berkman
November 22, 2017
FEI Daily spoke with Steve Thompson, KPMG’s Advisory lead for Revenue Recognition and Marybeth Shamrock, KPMG’s Advisory lead for Leasing, following the release of KPMG’s 2017 Accounting Change survey results.
By Michael Cohn
November 15, 2017
The revenue recognition standard takes effect for public companies starting in December, while the leasing standard takes effect next December, but many companies are still not ready for either standard.
By Robert L. Paretta
After a nearly 10-year collaboration to develop a converged standard on leasing, on Jan. 13, 2016, the IASB issued IFRS 16, Leases, and on Feb. 25, 2016, FASB issued Accounting Standards Update (ASU) 2016-02, Leases—Topic 842.
How Should Auditors Get Ready for the New Lease Accounting Rules?--Get Sufficient Documentation; Question the Assumptions Used
By Xing Gao
October 11, 2017
While companies are implementing the new lease accounting standards, auditors are getting ready to conduct audits under the new rules. Bloomberg BNA interviewed Paul Becht, partner of Margolin, Winer & Evens LLP, who explained some of the challenges auditors will face and what they need to look out for under the new leasing rules.
By Steve Miller
September 26, 2017
Corporate real estate decision-makers and brokers, brace yourself. With the new lease accounting standards effective in 2019, real estate decisions are about to get more complicated.
By Ken Tysiac
September 25, 2017
FASB on Monday proposed clarifying the application of guidance in its new lease accounting standard to land easements.
By David M. Katz
August 4, 2017
In a move only a company as massive as Microsoft would consider making, the company is planning to offer a set of restated financial statements on Oct. 1 that reflect its early adoption of both of the Financial Accounting Standards Board’s two major new standards, the rules covering revenue recognition and lease accounting.
By Ken Tysiac
August 3, 2017
Cathy Clarke, CPA, worries that companies are underestimating the amount of work required to implement FASB’s new lease accounting standard.
August 1, 2017
Why are the FASB and the IASB changing accounting for leases? A 2005 SEC survey estimated the off-balance sheet obligation associated with operating leases for public companies at $1.25 trillion. In 2016, the FASB and IASB issued new standards to bring these obligations on the balance sheet.
By Denise Lugo
July 6, 2017
Microsoft’s investors and analysts will be among the first to view the significance and effects of new lease accounting rules that require companies to disclose on their balance sheets the full extent of the leases they carry.
By Vipal Monga
June 5, 2017
A major accounting rule change is stressing finance staff and creating headaches for technology departments at some of the world’s largest businesses.
By Miriam Gottfried
June 1, 2017
With net cash on its balance sheet, Abercrombie & Fitch ANF -2.40% seems like an easy acquisition target, despite years of declining sales.
April 13, 2017
Avison Young announced today that research from an internal study indicates that numerous companies are unaware of the impact that the FASB and IASB's new lease accounting standards will have on their enterprise value.
By Bill Bosco
March / April 2017
Bill Bosco examines interim rent accounting under ASU 842, including implications for both lessees and lessors. He encourages lessors to become very familiar with the new lessee accounting rules as they will have a large impact on their lessee customers.
By Terry Sheridan
March 28, 2017
In a finding that surprised even the survey’s sponsor, a majority of respondents to a survey conducted by LeaseAccelerator indicated they are well on their way to adopting the Financial Accounting Standards Board’s (FASB) new lease accounting rules.
January 23, 2017
The Big 3 Accounting Standards Updates (ASUs) ─ ASU 2014-09, Revenue from Contracts with Customers, ASU 2016-02, Leases, and ASU 2016-13, Financial Instruments – Credit Losses ─ from the Financial Accounting Standards Board pose significant challenges for CPAs.
By Sabine Vollmer
January 19, 2017
As mandated by regulators, Sealed Air is implementing the new lease accounting standard on schedule.
Vince Baczor warns: "Very few companies have begun to prepare properly for the pending IFRS16 lease accounting changes"
By Brian Rogerson
January 12, 2017
With 25 years in asset lease portfolio management, and having designed and developed three specialist software systems, Vince Baczor is widely considered a global thought leader on the subject.
By Denise Lugo
January 12, 2017
Public companies—including Amazon.com Inc. and Microsoft Corp.—are gearing up for the most historic accounting changes to hit U.S. capital markets in decades.
By Stephanie Overby
December 23, 2016
The Financial Accounting Standards Board’s new lease accounting standards announced earlier this year will require public companies to recognize assets and liabilities from operating leases on their balance sheets for fiscal years beginning after December 15, 2018.
By Joseph Bailey
December 13, 2016
The accounting treatment of leases has been a hot topic for more than a decade as standard setters and businesses attempt to comply with off-balance sheet reporting requirements addressed by the Sarbanes-Oxley Act.
By Amber Albert
August 16, 2016
How would you like your balance sheet to blow up by $18.2 billion? That’s the amount of Verizon’s minimum future rental payments under non-cancelable operating leases reported in their most recent Form 10-K.