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Lease Accounting Standard

Sikich

Jan 13 2017

1 min read

Adoption 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).

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About the Author

Sikich

Sikich is a global company specializing in technology-enabled professional services. With more than 1,900 employees, Sikich draws on a diverse portfolio of technology solutions to deliver transformative digital strategies and is comprised of one of the largest CPA firms in the United States. From corporations and not-for-profits to state and local governments and federal agencies, Sikich clients utilize a broad spectrum of services* and products to help them improve performance and achieve long-term, strategic goals. *Securities offered through Sikich Corporate Finance LLC, member FINRA/SIPC. Investment advisory services offered through Sikich Financial, an SEC Registered Investment Advisor. 