New Lease Accounting Standards

Lease Accounting for the Transportation and Logistics Industries

Lease accounting for the transportation and logistics industries will change with the new standards. Transportation and logistics companies lease a diverse range of assets from storage units to airplanes and ships.

The new leasing standards will require transportation and logistics companies to update their accounting policies based on the new principles. In some cases, extensive analysis may be required to arrive at judgments on how to apply the standards to certain lease types.

Key considerations for transportation ad logistics companies include:

  • Does an agreement for partial use of a transportation or storage asset constitute a lease? Consider arrangements such as an agreement for shipping capacity or oil tanker capacity.
  • How will complex terminal leases at airports be affected by the new leasing standards? What about terminal subleases? Consider the additional lease components in a terminal lease such as moving rails and boarding ramps, as well as non lease components such as landing rights.
  • How are complex railcar asset utilization structures, such as right-of-way agreements, non-billable days, variable payments, sale leaseback transactions, and asset retirement obligations impacted by the new standards?
transportation and logistics lease accounting

What the Experts Think

Links to Additional Resources

Applying IFRS: IASB issues a new leases standard – tank terminals

Applying IFRS: IASB issues a new leases standard – tank terminals

Transportation and Logistics

Applying IFRS: IASB issues a new leases standard – tank terminals

EY tank terminals lease accounting

In their "Applying IFRS" series, EY discusses the effects of the new lease accounting standards on tank terminals, which include changes to supplier negotiations, identified assets, and more.

In depth: Transportation and logistics industry supplement to leasing standard

PwC transportation and logistics

PwC details how the new lease accounting standards by FASB stand to impact the transportation and logistics industry as well as how the industry can prepare for these changes.

How the FASB’s new leases standard will affect airlines

EY airlines lease accounting

EY explains how FASB's new lease accounting standards will affect the airline industry in their "Technical Line" publication. This includes changes to financial reporting, lease classification, and more.

Are you ready for the new accounting standards for Revenue recognition and Leases? Shipping industry alert

shipping lease accounting

EY discusses the effects of the new lease accounting standards on the shipping industry, which include changes to accounting for shipping contracts, sale/leaseback transactions, and variable payments.

The New Lease Accounting Standard Includes a Significant Change for Stakeholders in Transportation and Logistics

The article form Moss Adams discusses the impact of the new lease accounting standard on transportation and logistics companies as well as how companies in this industry can best evaluate their leases under the new standard.

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