AccountingLink

    Leases

    2 October 2017

    To the Point - FASB proposes narrow amendments and technical corrections to the new leases standard
    The FASB proposed narrow amendments and technical corrections to clarify how to apply certain aspects of the new leases standard. The proposed clarifications would address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments, among other things. Comments are due by 13 November 2017.

    28 September 2017

    To the Point - FASB proposes transition practical expedient for land easements and clarification on applying ASC 842
    The FASB proposed adding a transition practical expedient for land easements in the new leases standard that would permit an entity to continue applying its current accounting policy for land easements that existed or expired before the standard’s effective date. The proposal also would clarify that an entity would evaluate whether land easements are leases under the new standard before applying the guidance on intangible assets. Comments are due by 25 October 2017.

    5 July 2017

    Financial Reporting Developments - Lease accounting - Accounting Standards Codification 842, Leases
    We have issued a new FRD publication on accounting for leases under Accounting Standards Codification 842, Leases. This publication discusses how the new leases standard is applied and is intended to help companies consider the effects of adopting it. The views we express in this publication represent our perspectives as of January 2017, and we expect to update this publication as we develop additional insights.

    20 December 2016

    Financial Reporting Developments - Lease accounting
    We have updated our Financial reporting developments (FRD) publication primarily to reflect amendments to the leases guidance that will be effective when an entity adopts the new revenue recognition standard (ASC 606). The updates highlight the effect the new revenue guidance will have on the accounting for arrangements that contain leases. Refer to Appendix D of the publication for a list of updates. This publication does not address the accounting for leases under the new leases standard, which is codified in ASC 842. That new standard, which will supersede ASC 840, requires lessees to recognize assets and liabilities for most leases but recognize expenses on their income statement in a manner similar to today’s accounting.

    19 May 2016

    Technical Line - How the FASB’s new leases standard will affect oil and gas entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for oil and gas entities.

    19 May 2016

    Technical Line - How the FASB’s new leases standard will affect power and utilities entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for power and utilities entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect airline entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for airline entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect automotive entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for automotive entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect engineering and construction entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for engineering and construction entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect financial services entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for financial services entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect health care entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for health care entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect mining and metals entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for mining and metals entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect real estate entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for real estate entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect retail and consumer products entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for retail and consumer products entities.

    14 April 2016

    Technical Line - How the FASB’s new leases standard will affect telecommunications and cable entities
    The FASB’s new leases standard significantly changes the accounting for leases and could have far-reaching implications for many entities. Our Technical Line discusses key implications for telecommunications and cable entities.

    26 February 2016

    Let’s talk: Practical matters - Leases make their way onto the balance sheet
    New US GAAP and IFRS standards will require lessees to recognize most leases on their balance sheets and make other changes to lease accounting. All companies with significant leasing activities should review the standards and begin thinking about the implications now. Starting early is the best way to avoid unwanted surprises and costly mistakes. This publication complements our recent To the Point on the FASB’s new standard and outlines what companies should consider as they move through the implementation period.

    25 February 2016

    To the Point - FASB issues final guidance that will change the accounting for leases
    The FASB issued final guidance that requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The guidance also eliminates today’s real estate-specific provisions for all entities. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases.

    23 November 2015

    To the Point - FASB sets an effective date for the new leases standard and modifies the lease classification test
    The FASB decided that the new leases standard would be effective for public business entities for annual and interim periods beginning after 15 December 2018. For nonpublic business entities, the effective date would be annual periods beginning after 15 December 2019, and interim periods the following year. Early adoption would be permitted for all entities. The FASB also decided to modify the economic life classification criterion for certain leases. With these decisions, the FASB completed redeliberations and directed its staff to proceed with the final standard, which it plans to issue in early 2016. The FASB revised the decisions posted on its website to say that the new leases standard would be effective for certain not-for-profit entities and employee benefit plans for annual and interim periods beginning after 15 December 2018 (i.e., the public business entity effective date). The previously posted decisions didn’t address these entities. We have updated our To the Point publication on the effective date to reflect this clarification.

    8 October 2015

    To the Point - FASB addresses issues raised during drafting of the new leases standard
    The FASB came back to the table to discuss several issues that arose as its staff was drafting its new leases standard. The Board reached decisions on a lessee’s accounting for a modification to the lease term, a lessor’s recognition of initial direct costs in a sales-type lease and a lessor’s presentation of its net investment in a sales-type or direct financing lease. The Board also considered but decided against adding separate guidance for nonpublic business entities. The Board indicated that it will set an effective date for the new standard in early November.