The Time is Now to Understand the Implications of the New Lease Standard, Effective 2020 for Private Companies and Most Nonprofits

Posted on March 7, 2019September 9, 2021

In February 2016, FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) to increase transparency and comparability of lease transactions. There are elements of the new standard which will likely impact almost all entities to some extent, although lessees will likely see the most significant changes with their accounting for and reporting of lease agreements. Because of the significant changes contained in this ASU, the effective date for implementing the new accounting guidance was pushed to 2020 for private companies and most nonprofits. FASB has taken advantage of the intervening period of time between issuance and effective dates to provide various improvements and practical expedients.
In this detailed Whitepaper, AAFCPAs has outlined the significant changes resulting from the new ASU for your convenience, and provides details and insights related to the practical expedients and improvements. This ASU applies to all entities that enter into a lease.
Read AAFCPAs’ detailed Lease Standard Whitepaper to learn what leesees and lessors need to know. >> https://info.aafcpa.com/download-lease-standard-offer
If you have questions about how the new Leases ASU will impact you, please contact Olga Yasinnik, CPA, MBA at oyasinnik@nullaafcpa.com, 774.512.4082; Jeffrey Mead, CPA, CGMA, at 774.512.4143, jmead@nullaafcpa.com; or your AAFCPAs Partner.

About the Authors

Olga Yasinnik, CPA, MBA

Olga is a distinguished leader within AAFCPAs’ Community Impact Human Services and Community Development practices, renowned for her deep expertise in Uniform Guidance and state-specific compliance and filing requirements. Olga contributes significantly to the firm’s Nonprofit Accounting & Auditing Committee, she helps ensure AAFCPAs' practices comply with the latest accounting regulations, advising clients on the impactful changes to their financial reporting and operations. Olga helps develop specialized consulting services that empower nonprofit organizations to thrive, most …

Jeffrey Mead, CPA, CGMA

Jeffrey is a Partner in the Commercial Assurance Division at AAFCPAs, where he provides technical accounting advisory solutions and concurring partner reviews. This includes guidance on standards implementation and interpretation. He is a leader of the firm’s Accounting and Assurance (A&A) Committee, Revenue Recognition and Lease Accounting Task Forces, as well as AAFCPAs’ Risk Committee. Jeffrey brings empathy, patience, respect, and the will to inspire into his work as coach and mentor for the company’s pioneering …

Related Insights

GASB: Subscription-Based Information Technology Arrangements

AAFCPAs would like to remind entities following government accounting rules, including clients in the Charter School industry as well as other quasi-governmental organizations, of the Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription Based Information Technology Arrangements, which is required to be adopted in FY 2023. GASB 96 applies to all subscription-based information technology arrangements […]

Guidance: CECL Standard for CDFIs

The long-awaited Current Expected Credit Losses (CECL) Standard, Accounting Standards Update 2016-13 – Financial Instruments-Credit Losses (Topic 326) will be effective for nonpublic business entities and not-for-profit entities for fiscal years beginning after December 15, 2022. This means CECL will be effective for the calendar year 2023 reporting period and fiscal year 2024 for off-year […]

Guidance on Lease Standard for Independent Schools

What Lessees Need To Know In February 2016, FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842) to increase transparency and comparability of lease transactions. Because of the significant changes contained in this ASU, though issued in 2016, the effective date for implementing the new accounting guidance was pushed to fiscal year 2023 for […]