New Leases Standard Mandates Change
If your organization engages in leasing almost any type of business asset – whether as a lessor or lessee – the new leases standard from the Financial Accounting Standards Board (FASB) will likely require changes in how these leases are accounted for in your financial reporting.
Adopted in February 2016, Accounting Standards Update No. 2016-02, “Leases (Topic 842),” affects virtually all leases, and alters current GAAP in numerous ways. Among the most significant changes mandated by the lengthy new standard is the requirement that most operating leases now must be recorded on a company’s balance sheet. In addition to directing companies to be more transparent in their footnotes, the new leases standard is designed to provide an organization’s stakeholders with a more comprehensive picture of how leasing activities affect the company’s financial statements.
New Lease Accounting Standard Webinar
The new accounting standard on leases contains some dramatic changes that organizations with lease contracts will need to prepare for. To be ready when the new guidance goes into effect, financial executives need to comprehend the potential ramifications of the coming changes and determine the best way to implement the guidance in their organizations.
How Crowe Can Help
Crowe Horwath LLP professionals can help you evaluate the impact of the new lease accounting standard on your existing leasing agreements and financial reporting. We offer deep expertise and a robust set of resources that can assist you in adapting this new standard.