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.

Harnessing lease accounting centers of excellence

Len Neuhaus | February 10, 2020

Government entities also face other challenges specific to the nature of their operations, challenges that many may not have anticipated, and which are related to the very nature of their organizations.

Lease-Accounting Rules May Have Hurt Companies’ Valuations, Study Says

Mark Maurer | January 27, 2020

Companies will need to transition away from their original team used for implementation and move toward a long-term staffing strategy with in-house personnel. As a result, many companies with large, distributed leasing portfolios have centralized the staff performing record-to-report functions in a leasing center of excellence (COE).

Key Steps to the Lease Accounting Close

Len Neuhaus | January 27, 2020

Compared with the historical close process used under the legacy leasing standards, ASC 840 and IAS 17, several procedures have been added to the record-to-report processes. There are new quantitative and qualitative disclosers, new general ledger accounts, and new controls required. However, the most cumbersome new procedures fall on the teams outside accounting. Many may be new to accounting and the new standards.

GASB 87: State and local government entities face special challenges beyond mere accounting

Mark Koppersmith | January 2, 2020

A recent change in how companies are expected to account for and report operating leases on company balance sheets may have delivered a jolt to their share prices, raising questions about how future rules could affect companies’ valuations.

3 common mistakes in lease accounting

Will Tanem | December 17, 2019

With the deadline to adopt ASC 842 extended, though nonetheless looming, here are just three examples of where the new standard can be complex during the adoption, and how to correctly account for these lease-related arrangements.

How Do The New Lease Accounting Standards Affect Your Assessment Of Credit Risk?

Luka Vidovik, Giorgio Baldassarri, Jithin Vadakoott, Prasad Tamminaina | December 16, 2019

The new accounting standards will affect a number of a company’s financials, and the changes may be significant for companies with a larger proportion of operating leases.[8] Moreover, this change may be different for companies reporting under IFRS versus GAAP.

APAC firms struggle to meet new lease accounting standards

IT Brief | December 5, 2019

A poll by LeaseAccelerator and business consulting firm RGP found that more than 50% of organisations were still working on compliance for the new standards which began to take effect at the beginning of 2019. Those organisations find data collation and discount rate determination equally cited as the biggest areas of concern.

Year-end accounting and disclosure reminders for reporting under the new leases standard

EY | November 21, 2019

As public entities prepare their first annual reports on Form 10-K after adopting Accounting Standards Codification (ASC) 842, Leases, they should carefully consider their accounting and disclosures in areas that require significant judgment, estimates or changes in practice from ASC 840.

Airlines Get a Break in New Accounting for Leases

Jean Eaglesham | November 15, 2019

Airlines lease gates and ticket counters at airports, retailers lease stores in malls and banks lease branches. Under new accounting rules, one of these groups doesn’t need to include the leases on company balance sheets.

Lease Deferrals May Tempt Some to Delay Efforts

Tammy Whitehouse & Deloitte | November 1, 2019

The potential extensions may give some business leaders an added sense of comfort about the time available for preparation, but delaying readiness activities may be a risky approach, according to Sean Torr, Deloitte Risk & Financial Advisory managing director, Deloitte & Touche LLP. “Any organization not already acutely focused on its lease accounting adoption needs to put implementation efforts into action,” he adds.

ESMA reporting enforcement prioritises IFRS 16 Leases

Pat Sweet | October 24, 2019

On IFRS 16 Leases, enforcers will be looking at how companies exercise significant judgment in their application, particularly in determining the lease term and the discount rate.

SIG dispatch: Leasing Spend — The Hidden Double Digit (millions) Category Savings Opportunity! (Part 1)

Jason Busch | October 17, 2019

At SIG’s Global Executive Summit this week in California, two sessions, a mainstage panel and a breakout session, focused on the opportunity for lease sourcing. Two LeaseAccelerator execs — Steve Keifer, VP of Marketing, and Ingemar Lanevi, VP of Global Lease Sourcing Solutions — ran the sessions...In Part 1 of a quick two-part series, I’ll share some of my notes on the leasing opportunity for procurement to pursue based on Steve and Ingemar’s lecture.

Lease accounting: globalisation and the role of the CFO

Josh May, LeaseAccelerator

To benefit from globalisation, CFOs and finance teams need to focus on tracking market trends and identifying global opportunities for growth...The role of technology has never been so important: automating processes can offer a strong return on investment, freeing up the time of the finance function to focus their skills and experience on more value-adding activities.

Leasing rule changes in Hong Kong will affect firms and people

Alfred Romann

A new financial reporting standard that became effective at the beginning of 2019 has changed the way leases are accounted for, and impacted both business and individuals across Hong Kong.

Hidden in plain sight: Accounting for embedded leases

Stephen G. Austin, CPA; Joel C. Colbourn; and Kristen Gibbons

Under the new standard as codified in FASB ASC Topic 842, Leases, contracts that are not clearly identified or labeled as leases may be “arrangements that contain a lease.” For example, a lease may exist when equipment is provided by a vendor in connection with the purchase of consumables or the delivery of a service. Discovery and deeper evaluation of these arrangements where leases may be hidden in plain sight has been a significant challenge for many preparers.

ASC 842 The Incremental Borrowing Rate: Overcoming the Challenges

Sonia Chopra, CPA, CFE |  September 11, 2019

When calculating the lease liability, a discount rate will be applied to calculate the present value of future lease payments. Sounds simple enough, but coming up with the discount rate has been a challenge for many companies. Let’s find out what the challenges have been and how they can be overcome.

What Private Companies Can Discover From Public Company Implementations Of ASC 842

Mark Davis, Jeanne McGovern, Sean Torr, Bill Fore, and Lauren Pesa | Deloitte |  September 9, 2019

In July 2019, the FASB tentatively pushed back the effective date for nonpublic business entities (private companies), but the delay doesn’t change what promises to be a rigorous implementation effort.[3] What can private companies discover from the public company implementations of ASC 842? Here are some of the highlights.

Bye-bye to net-net: How regulators have killed a legendary stock-picking strategy for value investors

Robert Tattersall |  August 26, 2019

The problem for the value investor is that long-term leases create long-term assets, so the assets are not part of working capital, but, to adhere to IFRS 16, the increased liabilities are deducted to calculate net-net working capital. With current assets unchanged and total liabilities increased, there will be even fewer companies that pass the net-net working capital screen.

Is it a Lease? ASC 842: Let's Analyze

Sonia Chopra, CPA, CFE |  August 21, 2019

The key focus here will be on the terms “control” and “identified asset.” In the old standard (ASC 840), a customer did not need to both obtain substantially all the economic benefits and direct the use of the asset to control the use of the asset.

Moody's blasts FASB's proposed lease accounting delay

Robert Freedman |  August 20, 2019

In a comment Monday, analysts at Moody's said the proposal would hinder the credit analysis process by compromising comparability between public and private issuers. It would also delay, "for adoption laggards," the enhanced disclosures these new standards bring.

WeWork IPO: This Accounting Rule Change is ‘Crushing’ the Company’s Financials

Anne Sraders |  August 15, 2019

In 2016, the Financial Accounting Standards Board (FASB) issued an accounting rule change, ASC 842, stating that right-of-use assets and lease liabilities for leases of more than 12 months need to be recognized on the lessee's balance sheet—or in other words, WeWork's bread and butter, leases, need to be accounted for as on-balance sheet liabilities.

Flying the Standard: Taking IFRS 16 Leases to the Next Level

John Kuett |  July 2019

The new lease accounting standard, IFRS 16, is now in effect. Many companies are still getting to grips with the changes to their financial reporting, with all leases coming onto the balance sheet for the first time. But beyond initial implementation, IFRS 16 is also enabling companies to capitalise on the transparency the new standard is delivering.

Private companies can learn from public company implementations of the lease accounting standard

Mark Davis, Jeanne McGovern, & Sean Torr | Deloitte |  July 25, 2019

As a result, the public company implementations of the first major update to lease accounting in nearly 40 years has yielded a number of takeaways that can benefit private companies. Here are some of the highlights.

Lease Accounting: 5 Lessons Learned from Public Company ASC 842 Implementations: How Private Companies Can Avoid Making the Same Mistakes

LeaseAccelerator |  July 2019

We’re now seeing the first public company filings under ASC 842. While many made the deadline, most were not able to accomplish both the transition and setting up all of the back-end processes to maintain compliance. Many are still relying on manual workarounds while they work to establish long-term, automated strategies. The main reason why public companies fell behind was because they underestimated the burden of the standard.

Equipment Leasing: The Good, the Bad, and the Ugly

Ingemar Lanevi |  July 18, 2019

Having spent a number of years both in the equipment-leasing industry and as a corporate treasurer, I am still surprised by how often companies appear to just enter into lease transactions with no more foresight than the stroke of a pen. In many cases, they enter a deal worth hundreds of thousands, or even millions, of dollars over multiple years after very little review or analysis of the lease transaction’s terms and true costs over time.

FASB Gives Private Companies Breathing Room on Lease Accounting

Vincent Ryan | July 17, 2019

The Financial Accounting Standards Board voted unanimously on Wednesday to propose delaying the effective date of some of its major accounting standards, including ASC 842, Lease Accounting, for privately held companies, nonprofits, and small reporting companies.

LeaseAccelerator acquires Guardian Global Systems

Michael Cohn | July 11, 2019

Guardian Global will expand LeaseAccelerator’s portfolio of applications with a system for helping real estate companies manage their buildings, land and property contracts, both leased and owned.

Leases: On the path to business as usual

Katelyn Bonato, Masha Marchev, & Sean Rugers | PwC Australia | July 5, 2019

The new leases standard applies to Australian entities from 1 January 2019. As with any new accounting standard, it’s easy to focus on the immediate problem of getting the numbers right on adoption of AASB 16 and lose sight of how the standard will be applied on a day-to-day basis in your organisation.

Lease Accounting Post-Adoption

Michael Keeler | July 3, 2019

Over the coming months, these companies will need to transition to longer-term, sustainable strategies for compliance. They will need to institutionalize processes, policies, and controls for leasing that leverage automation and systems. They will need to perfect the close process to reduce the risk of earnings announcement delays. And they will need to bulletproof the record-to-report lifecycle to reduce the risk of a material weakness from their first post-implementation audit.

FASB To Consider Delaying Required Adoption Dates Of New Standards For Some Companies

Cydney Posner | June 28, 2019

FASB will soon be considering whether the mandatory adoption dates for major new accounting standards should be delayed for small public companies and privately held businesses.

Renewed Interest in Synthetic Leases - A Refresher and Changes Under the New (ASC 842) Lease Accounting Standard

King & Spalding | June 27, 2019

Although this financing technique’s popularity dipped years ago, we’ve experienced increasing synthetic leasing engagements and requests to assist with evaluating and implementing synthetic leasing as a new product offering. These developments are occurring even in the face of new financial accounting changes that affect the lessee’s balance sheet treatment of leases, including synthetic leases.

FASB Action Alert: Financial Accounting Standards Advisory Council Meeting Recap

June 20, 2019

FASAC members provided their views on the FASB’s research project, focusing on recent major standards including leases, hedging, credit losses, and insurance. Overall, Council members expressed diverse views on the philosophy for effective dates for major projects. Many Council members supported providing organizations with fewer resources additional time to implement major standards, particularly given the number of major standards issued in the last few years...FASAC members participated in the first of a series of discussions on the FASB’s post-effective date assessment of costs and benefits of the leasing standard. This session focused on public companies’ initial and recurring costs of transitioning.

AICPA committee requests delay in private company lease accounting effective date

By Ken Tysiac
May 13, 2019

An AICPA committee has asked FASB to delay the private company implementation date of its new lease accounting standard, citing overload for private company financial statement preparers.

What will IFRS 16 mean for 2019’s reporting season?

By John Kuett
May 13, 2019

2019’s quarterly and half year results will mark the first time that most companies have had to disclose their operating leases for the previous standard on their balance sheets. But what does this mean for reporting season?

Private companies falling short on lease accounting standard

By Michael Keeler
May 10, 2019

[P]rivate companies are reporting a lower state of readiness than the survey population from 2018. The good news, however, is that private companies should benefit from the experiences of public companies who are one year ahead of them in the lease accounting journey.

New Lease Standard: Comparing IFRS and U.S. GAAP

By Sandy Peters
May 9, 2019

Financial statement users have long been aware of the hidden leverage that arises from lease obligations, especially in the retail industry. As companies file their first financial results for 2019, financial statement preparers and users alike will finally find these leases brought to light, thanks to the new lease accounting standards issued by FASB and IASB.

What private companies can learn from public companies about lease accounting

By Michael Cohn
April 10, 2019

Approximately 40 percent of private companies are behind schedule on implementing the new lease accounting standard or haven’t started getting ready yet, even though the implementation deadline is approaching, according to a new survey.

Top Ten Lease Accounting Considerations for Investors

By Sandra J. Peters, CPA, CFA
Jack T. Ciesielski, CFA
April 4, 2019

Learn how IFRS 16 and US GAAP-ASC 842 have affected lease accounting with CFA Institute. New lease obligations will impact balance sheet and cash flow reporting.

New FASB standard clarifies lease accounting issues

By Ken Tysiac
March 5, 2019

Moody’s Investors Service is putting the spotlight on accounting in the first of a series of reports examining the impact of the new lease accounting standard on public companies in their annual and quarterly reports.

Moody’s predicts big impact from lease accounting changes

By Michael Cohn
February 21, 2019

Moody’s Investors Service is putting the spotlight on accounting in the first of a series of reports examining the impact of the new lease accounting standard on public companies in their annual and quarterly reports.

IFRS 16 set to pull £180bn onto FTSE 350 balance sheets

By Pat Sweet
February 20, 2019

Royal Dutch Shell, BP, Sainsbury’s, Vodafone and International Airlines Group head the ranking of FTSE 350 companies whose balance sheets are set to be most impacted by the new IFRS 16 lease accounting standard, according to analysis by accounting software specialist LeaseAccelerator.

A big change in accounting will put $3 trillion in liabilities on corporate balance sheets

By Yun Li
February 16, 2019

"I do think people will have to adapt to new metrics – and they may be surprised. The liabilities and assets that companies report may look very different from the ad hoc estimates that people have used in the past," Todd Castagno, equity strategist at Morgan Stanley, told CNBC.

Tesco and RBS financial reporting hit by IFRS 16 Leases

By Pat Sweet
February 15, 2019

Tesco is the latest company to flag up the negative impact of the latest IFRS 16 lease accounting standard on its balance sheet, with a projected £101m drop in profit before tax, while Royal Bank of Scotland results also hinted at the cost of future implementation

Why Corporate Lease Management Is Headed For An Overhaul

February 14, 2019

Keeler explained that the changing requirements mean companies must be able to aggregate all of their lease data and implement processes to better manage it – a feat that can be challenging for companies that have hundreds of lease agreements across multiple units, often in multiple jurisdictions.

General Electric is making an accounting change that'll make one of its biggest problems look less severe (GE)

By Ethel Jiang
February 5, 2019

With the financing-lease assets and operating-lease assets now being counted as capital expenditures (CAPEX), companies' free cash flow (operating cash flow minus capital expenditure) will look different than they used to, Charles Mulford, professor of accounting at Georgia Institute of Technology, told Markets Insider.

CFOs Uncover Surprise Savings as They Implement New Lease-Accounting Rules

By Nina Trentmann
January 22, 2019

“Now that companies have their lease information in one place, they might be able to manage these contracts more efficiently and find cost savings,” said Michael Keeler, chief executive of LeaseAccelerator Inc., which sells software to help companies comply with the new standard.

How audit committees can oversee FASB standard adoption

By Ken Tysiac
December 20, 2018

New standards for revenue recognition, lease accounting, and accounting for credit losses have demanded intense focus from company finance departments. Audit committees are charged with oversight and making sure proper governance is in place to enable implementation to be completed successfully.

FASB aims to update fair value for lessors

By Daniel Hood
December 19, 2018

FASB will not be providing a last-minute reprieve on its lease accounting standard effective date, despite the concerns of financial statement preparers about the difficulty of implementing the new rules.

No delay in lease accounting standard effective date, Golden says

By Ken Tysiac
December 12, 2018

FASB will not be providing a last-minute reprieve on its lease accounting standard effective date, despite the concerns of financial statement preparers about the difficulty of implementing the new rules.

Under New Lease Standard: Interpreting ‘Class of Underlying Asset’

By Aaron Kesler
December 11, 2018

Embedded in the new lease standard is a term that, at face value, appears to be innocuous – “class of underlying asset.” As management teams work to draft and finalize their accounting policies, a common question keeps coming up: what exactly is “a class of underlying asset?”

Lease accounting changes expected to cost millions

By Michael Cohn
December 4, 2018

Companies are expanding their budgets to accommodate the new lease accounting standard, turning to interim solutions, temporary employees and outside consultants, with many of them expecting to spend millions of dollars on the effort, according to a new survey by Ernst & Young.

The New Lease Accounting Standards – Are You Ready for January 2nd, 2019?

By Colleen Tigges
December 4, 2018

With the deadline so close, many organizations are understandably focused on achieving compliance. However, an equally important consideration is how to maintain compliance after the deadline has passed.

A welcome change in lease-accounting rules

By Prateek Gakhar, Jyotsna Goel, and Werner Rehm
November 2018

For decades, investors, credit-rating agencies, and analysts assessing the relative performance of companies with large portfolios of leases have capitalized off-balance-sheet leases as assets rather than expenditures. Now, after much deliberation, the rules are catching up to common practice: in 2019, all leases longer than 12 months will have to be recognized on the balance sheet as a “right of use” asset and a corresponding financial liability.

FEI publishes guides to internal controls for leasing and CECL standards

Michael Cohn
November 16, 2018

Financial Executives International has released two guides to help CFOs, controllers and other senior finance execs address the internal control considerations for the new lease accounting and credit loss standards.

ASC 842 Implementation Countdown

Michael Keeler
November 8, 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 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.

New rules force retailers to rethink lease accounting

Jonathan Eley
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.

The 10 Key Issues to Consider in the Last 90 Days Before the Lease Accounting Deadline

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.

CFOs Fret About Loans on the Eve of New Accounting Rule

Tatyana Shumsky
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.

Are You Ready for ASC 842?

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.

Lease tools emerge to aid in last-minute adoption work

Tammy Whitehouse
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.

Three hidden real estate lease accounting challenges under the new standard

Scott Silver
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.

Leases And Rev Rec: It's Not How Much You Spend, But How

Olivia Berkman
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.

Lease accounting implementation insights: Lessons learned en route to adopting ASC 842

September 2018

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

Olivia Berkman
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.

Implementing the New Lease Accounting Standards

Norman Strauss, Marc Siegel, Mark LaMonte, Amie Thuener, Scott Taub, and Prabhakar Kalavacherla
August 2018

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.”

FASB proposes tweaks for leasing standard

Michael Cohn
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.

Optimizing the Four Critical Steps to Meet the Lease Accounting Compliance Deadline

Colleen Tigges
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.

IFRS 16 Leases: impact, challenges and solutions

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.

Who’s Ready for ASC 842?

Michael Keeler
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.

FASB attempts to make lease accounting implementation easier

Ken Tysiac
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.

As Effectivity of IFRS 16 Looms, CFOs May Have Less Time Than They Think

Cesar Bacani
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.

Unlock the Hidden Benefits of Lease Accounting Rules

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.

Preparing for IFRS 16

Treasury Today
July 2018

Keeler adds that achieving greater visibility into companies’ leasing programmes can bring opportunities for treasurers to identify unnecessary costs.

FASB issues 16 minor amendments to lease accounting standard

Ken Tysiac
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.

Management accountants grapple with new standards

Michael Cohn
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.

Lease accounting standard proves daunting for many

Michael Cohn
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

Alex Klein
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.

Five Big Budget Line Items to Consider in your Lease Accounting Project

Scott Dunnihoo
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.

This next accounting rule change will add liabilities to every balance sheet

Francine McKenna
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.

Companies foresee major impact from lease accounting standard

Michael Cohn
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.

How FASB’s new ASC 842 transition option will affect lessees and investors

Michael Keeler
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.

Standing Apart – Helping Lessees Adapt to the New Lease Accounting Standards

Scott Dunnihoo
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?

New Accounting Rule Moves Moody’s to Reevaluate Leases

Tatyana Shumsky
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.

Weary from accounting change, companies gear up for leases

Tammy Whitehouse
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.

FASB ASC 842 - Comparative Years No Longer Necessary for Lessees

Mike Hammerslag
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.

Preparing for the new lease accounting standard

Dustin Hindman
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.

How Many Leases Do You Have?

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.

New poll shows strains as companies prepare for lease rules

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.

Most companies are struggling with new lease accounting standard

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.

Managing the implications of IFRS 16

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.

Tips for Lease Accounting Implementation

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.

SAB 74 disclosures for new standard on lease accounting

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).

FASB clarifies lease standard’s application to land easements

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.

Finance Execs Worried about Internal Controls and Lease Accounting

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.

Seven Lease Accounting Lessons Learned from Early Implementation Projects

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?

FASB Seeks Cut in Lease-Accounting Costs

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.

Proposed Changes to Lease Standard Offer Simpler Transition

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.

FASB Proposes Tweaks to Leasing Standard

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.

Companies to Get Cost-Relief Option in Lease Rule Transition

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).

FASB plans to ease lease accounting requirements

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.

The Potential Impact of Lease Accounting on Equity Valuation

By Matthew A. Stallings
November 2017

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.

Do You Know Where Your Leases Are?

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.

The Challenges of Accounting Change: A Q&A With KPMG’s Marybeth Shamrock

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.

Companies implement technology to tackle revenue recognition and leasing standards

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.

Practical Illustrations of the New Leasing Standard for Lessees

By Robert L. Paretta
October 2017

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.

Six ways to minimize the financial impact of new lease accounting standards

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.

FASB proposes clarifying land easements guidance in leases standard

By Ken Tysiac
September 25, 2017

FASB on Monday proposed clarifying the application of guidance in its new lease accounting standard to land easements.

Microsoft Scales Accounting Mountain

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.

Why Lease Accounting Laggards Face Serious Risks

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.

Lease accounting | Frequently asked questions

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.

Wall Street Journal Lease Accounting article

Tech Teams Rush to Catch Up as New Accounting Rule Looms

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.

Wall Street Journal Lease Accounting article

Why Retailers Have More Debt Than Meets the Eye

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.

Avison Young

Avison Young Study Reveals Companies are not Prepared for FASB and IASB New Leasing Standards

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.

Interim Rents Under ASU 842: Lessees & Lessors Take Note

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.

Are Companies Starting to Make Progress on Lease Accounting?

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.

Get Ready to Face a Trifecta of Accounting Standards

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.

5 strategies to efficiently implement the new lease accounting standard

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.

Start Preparing Now for New Lease Accounting Rules

By Sean Moynihan
December 29, 2016

The new lease accounting rules will have far-reaching implications for both public and private companies.

New accounting standards change the rules of IT leasing

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.

Top 5 Biggest Changes With The New Lease Accounting Standard (ASC 842)

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.

No More Hiding Lease Liability

By C. Terry Grant, CPA
July 1, 2016

For years, companies exploited a financial accounting loophole by structuring lease transactions so they could account for them as operating leases. This let them avoid having to recognize a lease liability on the balance sheet, thus hiding the debt. Statement of Financial Accounting Standards (SFAS) No. 13, Accounting for Leases, only required entities with capital leases to report a lease liability and asset on the balance sheet.

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