Implementing FASB Accounting Standards Update No. 2016-02, Leases (Topic 842)
On February 25, 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) intended to improve financial reporting about leasing transactions. The adoption of Topic 842 has been postponed twice by the FASB. After the latest delay, attributed to the COVID 19 pandemic, this ASU is finally effective for all organizations for the years beginning after December 15, 2021 (for calendar year 2022 and fiscal year 2023).
Topic 842 affects all companies and other organizations that have lease agreements for assets such as real estate, IT, office, and manufacturing equipment.
The ASU will require organizations that lease assets—referred to as “lessees”—to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases.
Implementing the new lease standard is not just a one-time exercise. It requires changes to accounting processes and financial reporting controls. Reviewing and updating accounting policies related to leases, and assessing the applicability and necessity of elections and practical expedients will affect the overall process and timeline—so be sure to assess them early. Efficient and timely implementation requires a thorough evaluation of resources and AAFCPAs advises clients to identify someone now to take the lead for this work.
This 1-hour webinar is designed for CFOs, Executives leadership, and Boards of Directors to:
- Understand key considerations for implementing the new lease standard.
- Understand the complexities of the new lease standard in order to plan effectively for internal or external resources needed for a successful adoption.
- Understand the importance of practical expedients and accounting policy elections.
November 30th, 2021
12-1 pm EST