FASB is Changing Lease Accounting for Everyone
In recent months the US and international accounting boards (the FASB and IASB, respectively) have issued final new standards that have a significant impact on how leases will be reflected in financial statements going forward. The two boards have reached a general consensus on the long-anticipated changes to lease accounting rules under US-GAAP and IFRS. Companies following GAAP or IFRS will be required to adopt the standard for fiscal years beginning January 1, 2019, and financial statements issued in 2019 will include a “look-back” for two prior years, to 2018 and 2017. Companies will have the option to begin reporting under the new standards as early as 2018, if they desire. Private companies can delay the change in reporting until fiscal year 2020.