With the effective date of the new lease accounting standards coming close, companies are starting to collect their lease data and get ready to implement the new rules.
The new leases rules for public companies, effective Jan. 1, 2019, require them for the first time to put on balance sheet leased assets and liabilities previously kept off it. However, adopting the new standards is not as simple as recognizing an asset and a liability. Companies will need to change certain practices under the new leasing guidance. The change will bring investors and analysts more clarity about those contracts—figures that can reach billions of dollars. Public companies have to make their systems in place this year to get ready for the new rules.
Bloomberg Tax is following the new lease pronouncement closely. Our correspondents cover FASB, IASB, SEC, PCAOB and the AICPA, and provide valuable insights on a wide array of topics. This report highlights a few of the lease accounting related articles from Bloomberg Tax’s Accounting Policy & Practice Report as well as Insights from the Financial Accounting Resource Center.