The new lease accounting rules – ASC Topic 842 were signed in 2016 with a long implementation window such that public companies must transition to the new rules in 2019. And while 2019 seems distant, many actions should begin now. The presentation requirements are to show 3 year’s P&L (2017, 2018, & 2019) and 2…
The FASB version of the Leases project is expected to be issued within the next 2 weeks. The following is a brief summary of the proposed changes and transition plan for Lessee Accounting
During the first quarter of 2016, the FASB will issue its new standard on Leases. While the standard will represent a significant improvement to financial reporting, it also will be a change for many organizations—particularly those who engage in significant activities as a lessee.
The following is a brief summary of the issues discussed at the Oct 7, 2015 meeting: 1) Comments to Fatal Flaws Document, 2) Initial Direct Costs, 3) Lessor Presentation, 4) Lease Extensions and, 5) Relief to Private Companies.
Work is virtually completed on the lease accounting project of the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB).
The FASB held two recent meetings to cover disclosures, transition rules and an update of the project timeline. The most important headline is that they plan to finish the standard and issue it by year end 2015.
To help our clients better understand the FASB / IASB Convergence project and how it may affect their business, we have provided answers to the most common questions effecting lessees regarding the current state of the project.
Issue: Identify the proper date of lease inception for multiple “takedowns” subject to a Master Lease Agreement. Inception of the lease. With the exception noted below, the date of the lease agreement or commitment, if earlier.
FASB and IASB Convergence Project Explained Check out CGCF’s Convergence Project white board video. The video highlights the proposed changes from the earlier stages of the project. Much has transpired since but some key issues still remain. These remaining issues in GAAP Lease accounting could potentially have major implications to all stakeholders in the $750Bn equipment…