FASB Amends the New Lease Standard

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

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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 LeaseCrunch® posted in Lease Components, New Lease Standard, IFRS, FASB, Lease Payments

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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 LeaseCrunch® posted in FASB, IFRS, New Lease Standard

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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 LeaseCrunch® posted in New Lease Standard, IFRS, Lease Payments, FASB

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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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