Lease Standard Effective Date | RKL LLP
Posted on: December 3rd, 2015

FASB Establishes Effective Date for Major Leasing Standard

FASB accounting standards updateThe FASB recently established effective dates for an upcoming Accounting Standards Update (ASU) involving leases (topic 842).

Nonpublic business entities should apply the amendments in this ASU for fiscal years beginning after December 15, 2019 (i.e. January 1, 2020, for a calendar year entity). Early application is permitted for all nonpublic business entities upon issuance of the final guidance.

The FASB expects to issue the final guidance in early 2016.

This guidance may have significant business implications on commercial entities in virtually every industry. The proposed standard is expected to require most operating leases to be reflected on the balance sheet. Please look for RKL’s information release early in 2016 upon issuance of the final standard.

Have questions about this guidance? RKL is here to help. Contact your RKL advisor or one of our local offices for details and assistance in assessing the impact of adoption.

Michael P. Jones, CPAContributed by Michael P. Jones, CPA, a manager in RKL’s Audit Services Group. Mike specializes in serving the audit and accounting needs of commercial and not-for-profit organizations.

 

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