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

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
Olga specializes in driving high-energy audit teams, and advising sophisticated nonprofit organizations, including multi-services human & social services providers, community development corporations (CDCs) and their affordable housing development projects. She provides proactive guidance to these clients who receive state and federal grants, and must file Uniform Financial Reports (UFRs) and require audits in accordance with Uniform Guidance/Single Audit and Government Auditing Standards. Olga has extensive experienced in advising clients with projects funded by Low Income Housing and Historical Tax Credits.  She is an active leader of AAF’s Affordable Housing and Real Estate Community Development, and Human & Social Services practices.
Jeff Mead, Audit Partner
Jeffrey is a Partner and leader of AAFCPAs’ Commercial Practice, providing proactive audit/assurance, tax, and advisory solutions for closely-held and privately-owned businesses. His diverse commercial client base includes: professional service firms, technology companies, publishers, and manufacturers/distributors. Jeffrey strives to use the audit process as a fulcrum to leverage opportunities and to provide high-value, creative services to his clients. He has significant experience advising clients on economic and tax implications for key transactions, as well as new or complex applications of accounting pronouncements. He is a member of AAFCPAs’ Revenue Recognition and Lease Accounting Task Forces, providing technical accounting advice regarding understanding new standards, assessing the impact, and guidance on implementation and transition. He has extensive expertise advising employee benefit plan fiduciaries, including those offering 401(k), 403(b), defined benefit plans, and profit-sharing plans.