When the New Lease Standard Goes into Effect and Other Key Dates

January 1, 2019 at 9:00 AM / by LeaseCrunch® posted in New Lease Standard, Lease Payments, IFRS

If your organization leases just about anything and follows Generally Accepted Accounting Principles (GAAP) in the United States or International Financial Reporting Standards (IFRS) elsewhere, then the new lease standard affects you.

If you’re affected, then you need to know certain key dates, starting with the date by when you have to adopt the new standard.

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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

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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What Qualifies as a Lease under the New Lease Standard?

April 12, 2017 at 7:07 AM / by Ane Ohm posted in New Lease Standard, Lease Payments, IFRS

Not all arrangements qualify as a lease under the new standard. Of course, sometimes it’s easy to figure out if it’s a lease: renting your office space definitely qualifies as a lease. Copier and vehicle leases are, in fact, leases.

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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, 2020 (per the 10/16/19 delay from FASB). 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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