1. Deferred taxes
How will deferred taxes change? Consider how bringing operating leases onto the balance sheet could change the asset value under GAAP but not under the US tax code, resulting in a need for deferred taxes.
Major challenges of the new lease accounting standards
Lease Accounting Tax Impacts
Under the new leasing standard, leases will not be treated differently for U.S. federal income tax purposes. However, the increase in assets and liabilities could impact a variety of financial measurements which may in turn change the amount of taxes paid.
Key Considerations
2. State taxes
How will state taxes change under the new accounting rules? Consider whether a state collects property or franchise taxes which could change under the new standard.
3. Corporate processes
Will corporations change their processes due to the new standards? How will lease data be tracked to ensure accuracy for tax purposes? Also consider how changing processes may impact international taxes.
The ASC 842 Handbook
Learn how to get compliant and stay compliant with the FASB ASC 842 lease accounting changes while also driving savings.
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What the experts think.
How will the new lease accounting standards impact loan covenants?
Tax Accounting Perspectives: New accounting update requires changes to accounting for leases
February 14, 2018 – Deloitte’s Tax Accounting Perspectives document on the tax impacts of the new lease accounting standard, ASC 842, covers the potential impacts of the new standard on deferred taxes, state as well as local taxes, and the transition rules.
6 tax issues CFOs should understand about FASB’s new lease accounting standard
Deloitte’s Tax Accounting Perspectives document on the tax impacts of the new lease accounting standard, ASC 842, covers the potential impacts of the new standard on deferred taxes, state as well as local taxes, and the transition rules.
Evaluate the tax considerations of the new lease accounting standard
March 16, 2016 – On February 25, 2016, FASB issued its new lease accounting standard, Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). This new standard will affect all companies that lease, or sublease, assets in the nature of property, plant or equipment.
