The FASB Accounting Standards (ASU) for topic ASC 842, Lease Accounting, became effective at the end of 2021 for all reporting periods after December 15th 2021. This standard brings about significant changes across many different industries. With the new standard in effect, public and private companies must ensure they are following the new accounting guidelines. Apart from being compliant, companies… Read More »
The FASB ASC 842 Lease Accounting changes, which became effective at the end of 2021 for all reporting periods after December 15th 2021, haven’t just changed how leases are handled in books, but also the tax implications that may come along with it. Read more to understand the potential areas to focus in on..
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 »
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 »
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 »
Recent surveys from EY, PWC and Deloitte highlight that many public companies have found significant challenges in the successful transition to the ASC 842 standard. The transition has taken more time and effort than anticipated for most. Private companies are required to comply by the end of 2020 and should consider applying the lessons learned… Read More »