What We Want to See Happen With the New Lease Standard in 2019

January 15, 2019 at 1:00 PM / by Ane Ohm posted in FASB, New Lease Standard, CPA Firms, Technology


As we kick off 2019, everyone posts predictions for the coming year and I enjoy reading those as much as the next person. With
the new lease standard, it seems that predictions are more along the lines of, “the sky is falling!” There are only so many times we can hear that we’re in dire straits, so I thought I’d shake it up a bit.

 

Understanding the reality and the timeline of the new lease standard, what do I want to happen in 2019? Read on for my wishlist.

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Ask the Expert: John Hepp Discusses the New Lease Standard

December 17, 2018 at 1:21 PM / by Ane Ohm posted in FASB, New Lease Standard, CPA Firms, IFRS


Important note:
This is a judgment-based standard, which means there are few hard-and-fast rules and the treatment of your leases will depend on your unique situation. It's important that you always double-check decisions with an accounting professional who knows your circumstances. This blog should not be considered or take the place of professional advice or services.

We’re excited this month to share insights from our recent conversation with industry expert John Hepp. John is a retired partner from Grant Thornton and a former FASB project manager. He holds a PhD from the University of Wisconsin-Madison and is currently on the faculty at University of Illinois at Urbana-Champaign.

John discussed several nuances of the new lease accounting standard, from practical expedients (“the spoonful of sugar to help the medicine go down”) to discount rates and much more.

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FASB Amends the New Lease Standard

August 15, 2018 at 11:19 AM / by Ane Ohm posted in LeaseCrunch®, FASB, New Lease Standard, CPA Firms

LC_Blog_AUG-04

On July 30, 2018, the FASB issued a greatly anticipated ASU related to the new lease standard. ASU 2018-11, Leases (Topic 842), Targeted Improvements, has two provisions that are intended to make transition to the new lease standard easier and less costly. One is an additional transition method, providing transition relief that will be of great interest to lessees and lessors. The other provides a new practical expedient for lessors in their identification and separation of lease components.  

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Separating Lease and Nonlease Components

May 24, 2017 at 7:18 AM / by Ane Ohm posted in Lease Components, FASB, New Lease Standard, Lease Payments, IFRS

Identifying lease and nonlease components

Not all costs related to a lease are included in the leased asset and liability. For example, a lessor may lease a truck and also include a provision to operate the truck on behalf of the lessee. Providing a driver, maintenance and gas are not related to securing the use of the truck and these costs would be considered nonlease components. Another example of a nonlease component is the fee for common area maintenance when renting office space.

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Top Resource Guides for the New Lease Standard

April 1, 2017 at 6:40 AM / by Ane Ohm posted in FASB, New Lease Standard, IFRS

The new lease standard is coming and preparation is critical for a smooth implementation. This is easier said than done and the experts agree: this new standard is complicated.

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Why Is There A New Lease Standard?

March 7, 2017 at 4:12 PM / by Ane Ohm posted in FASB, New Lease Standard, Lease Payments, IFRS

The new U.S. lease standard, ASC 842, is required for public companies starting their fiscal year after December 15, 2018 and all other companies starting their fiscal year after December 15, 2019. Internationally, the cousin of ASC 842 is IFRS 16, which is effective for annual periods beginning on or after January 1, 2019.

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