On February 25, 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update intended to improve financial reporting about leasing transactions. This special report authored by Joseph P. Sebik, director of tax reporting for Siemens Financial Services, contains detailed background and intelligence on the new standard, which will have a significant impact on the bottom line of companies in a range of industries.
The new standard will mostly affect lessee accounting; however, this special report summarizes both lessee and lessor accounting under the new rules. When the new lease accounting standard becomes effective, lessees will for the first time be required to report billions of dollars in leased assets and corresponding liabilities from operating leases on their balance sheets. The report also highlights the new definition of a lease and how the structure of leases might change as a result of the new standard.
This exclusive report, A Paradigm Shift in Lessee Accounting: An Explanation of the New U.S. Leasing Guidance, provides insights and guidance to better prepare for the new lease accounting standard.