For domestic private companies, the Financial Accounting Standards Board's lease accounting standard, ASC 842, takes effect for fiscal years that begin after December 15, 2020, and for interim periods within fiscal years that begin after December 15, 2021. But international companies should already be in compliance with the International Accounting Standards Board's latest lease accounting standard, IFRS 16.
For a domestic private company that records leases from the perspective of a lessee, the most substantive change from previous lease accounting standards is the requirement that the company include operating leases, and distinguish them from finance leases, on the balance sheet. But this requirement does not apply to an international lessee, which should account for all leases as finance leases in financial statements.
In addition to accounting correctly for current leases, finance leaders must factor in lease accounting rules when evaluating and making decisions about future leases as well.
During this webinar, we will discuss: