New Lease Accounting Standards Are Here
Implementation Deadlines For Private Companies Are Fast Approaching:
LeaseAccounting.com is the leading online resource for accounting professionals seeking to comply with the new ASC 842 and IFRS 16 standards.
Find the best resources from the standards board, accounting firms, and technology vendors organized into a single site.
New Lease Accounting Standards
In early 2016 both the International Accounting Standards Board (which sets rules for the International Financial Reporting Standards – IFRS) and the Financial Accounting Standards Board (which sets rules for the US Generally Accepted Accounting Principles – GAAP), published new lease accounting standards.
ASC 842 will replace ASC 840 starting in January of 2019. It requires companies to report operating leases on the balance sheet as right-of-use assets and lease liabilities.
IFRS 16 will replace IAS 17 starting in January of 2019. Almost all leases will be treated as finance leases and reported on the balance sheet as right-of-use assets and liabilities.
Who is Most Impacted by the New Lease Accounting Standards?
Find out which companies and industries will experience the greatest balance sheet change from the implementation of the new lease accounting standards.
ASC 842 Updates
There have been multiple updates from the FASB since the initial introduction of the standards. These updates have ranged from minor clarifications to major reworkings of the available transition methods.
The SEC Staff Accounting Bulletin 74, or SAB 74, requires companies to disclose information about the implementation progress for new accounting standards and the expected impacts those standards will have in their SEC filings.