Lease Accounting Standard

January 13, 2017

Adopting the New Lease Accounting Standard

After years of deliberation and numerous exposure drafts, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02 – Leases (Topic 842) on February 25, 2016.

Generally, ASU 2016-02 results in any lease agreement that is longer than 12 months being recorded on the balance sheet. Leases are said to be one of the largest forms of off-balance sheet financing by the FASB and others. The changes that accompany ASU 2016-02 will primarily impact lessees, with less impact on lessors, and are effective for fiscal years beginning after December 15, 2019 for private companies (effective for fiscal years beginning after December 15, 2018 for public companies).

This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.

SIGN-UP FOR INSIGHTS

Join 14,000+ business executives and decision makers

Upcoming Events

Latest Insights

Understanding Dynamics Finance & Supply Chain Management Storage Quotas

September 29, 2023

7 Reasons Why Configuring DMARC Is Critical for Your Domain

September 28, 2023

10 Ways to Shop Floor Efficiency for Rolled Goods Manufacturers

September 28, 2023

About The Author

Sikich LLP

From accounting, tax and assurance to technology and advisory, Sikich offers a unique formula of professional services to businesses and organizations across the country. By pairing subject matter expertise with the real-world experience gained as entrepreneurial leaders, we provide clarity to your complex challenges and solutions to strengthen every dimension of your business.