iLease Management LLC (“iLease”) has been providing insightful research and recommended approaches into the proposed lease accounting changes since 2011. We do provide a brief overview and update of the proposed lease accounting changes in this document, but you will find that this whitepaper is different than others that we have authored. In this whitepaper… Read More »
FASB has offered several reliefs to organizations transitioning, which also includes shift of transition dates from December 31st, 2019 to December 31st, 2021. In this article, we will take a closer look at those effective dates and the transition approaches companies have at their disposal.
The Accounting Standards Upgrade (ASU) for topic ASC 842, Lease Accounting, has been issued by the FASB after years of consideration, bringing about significant changes in the industry as a whole. With the new standard in effect, public and private companies must ensure they are following the new accounting guidelines. Apart from being compliant, companies can reap several benefits from implementing the new principles.… Read More »
TENTATIVE BOARD DECISIONSTentative Board decisions are provided for those interested in following the Board’s deliberations. All of the reported decisions are tentative and may be changed at future Board meetings. December 2, 2020 FASB Board MeetingPost-implementation Review: Accounting Standards Update No. 2016-02, Leases (Topic 842). The Board discussed feedback received to date during the post-implementation review (PIR) of… Read More »
The recent changes in ASC 842 along with the Coronavirus pandemic have come together to unleash a plethora of chances in how leased assets are treated – not just for the lessee but for the lessor as well. One significant impact of the two happenings is that leases need to be recorded as a liability and a… Read More »
As the world continues to grapple with an invisible enemy, our daily lives aren’t all that have been impacted. Companies as a whole have been unable to collect or pay rent on their leased assets, while the changes in ASC 842 have meant that lease accountants all over the globe following GAAP have had to go through their books thoroughly… Read More »
The ASC 842 changes haven’t just changed how leases are handled in books, but also the tax implications that come along with it. There are seven key areas where lease accounting tax implications will take effect. Here, we’ll discuss those seven areas in detail to give you an overview of what’s going on. Tax Implications of ASC 842 Changes … Read More »
We’ve been addressing the changes FASB proposed and implemented in ASC 842 over the past couple of articles, including the changes in rate implicit in the lease, determination of IBR and leases embedded in contracts. After the break, FASB members, preparers and others reassembled to discuss another change; lease modifications. Here, the main issue was with regards to the complexity and costs involved with applying lease modifications in the books. This… Read More »
We previously discussed how FASB had discussed changes in ASC 842: Lease Accounting in Rate Implicit in the lease as well as the determination of IBR. At the same roundtable conference, the board also discussed the concern presented by some preparers about the identification of leases embedded within a contract. The main issue was that entities spent significant amounts of time trying to identify and… Read More »
In a previous post, we discussed how FASB is finalizing a change in ASC 842: Lease Accounting. As it stands, the change is set to impact every business that adopts GAAP to settle their books. FASB had been releasing updates every now and then to ensure that the new changes are well understood and implemented by the effective date. Although… Read More »