Accounting and Auditing Update. Staci L. Brogan, CPA, Shareholder Patricia R. Giudici, CPA, Senior Manager Schneider Downs & Co. Inc.

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Accounting and Auditing Update. Staci L. Brogan, CPA, Shareholder Patricia R. Giudici, CPA, Senior Manager Schneider Downs & Co. Inc."

Transcription

1 Accounting and Auditing Update Staci L. Brogan, CPA, Shareholder Patricia R. Giudici, CPA, Senior Manager Schneider Downs & Co. Inc.

2 Agenda Overview of the standard setting agenda Revenue recognition Lease accounting Other accounting standards updates Accounting standards exposure drafts update 2

3 Overview of the Standard Setting Agenda 3

4 Public Company Initiatives The Securities and Exchange Commission Rigorous oversight Robust enforcement Transformative rulemaking Improving the effectiveness of disclosures for investors and issuers Identifying new and emerging risks Public Company Accounting and Oversight Board Protecting investors Improving audit quality Applying professionalism 4

5 The Role of the FASB Technical agenda Recently completed projects Private companies Not-for-profit organizations International convergence 5

6 FASB Initiatives 6

7 FASB Initiatives FASB Simplification Initiative: Narrow projects through a series of short-term projects Projects are intended to improve or maintain the usefulness of the information reported to investors while reducing cost and complexity in financial reporting 7

8 FASB Initiatives (Con t.) Current and recently-closed projects include: Balance sheet classification of debt Accounting for income taxes, intra-entity asset transfers (recently issued as ASU ) Non-employee share-based payment accounting improvements Accounting for financial instruments hedging (recently issued as ASU and ) Liabilities and equity targeted improvements 8

9 Revenue Recognition 9

10 Overview: ASUs Revenue Recognition Updates: ASU Revenue from Contracts with Customers ASU Deferral of the Effective Date ASU Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ASU Identifying Performance Obligations and Licenses ASU Narrow-Scope Improvements and Practical Expedients 10

11 Overview: 5-Step Model Step 1 - Identify contract(s) with a customer Step 2 - Identify the performance obligations in the contract(s) Step 3 - Determine the transaction price Step 4 - Allocate the transaction price to the separate performance obligations Step 5 - Recognize revenue when the entity satisfies each performance obligation 11

12 Overview: Adoption Options Effective Dates: Public entities (years beginning after December 15, 2017) Nonpublic entities (years beginning after December 15, 2018) 12

13 Overview: Adoption Options (Con t.) Adoption Methods Retrospectively to each prior reporting period presented with certain allowable practical expedients, OR; Retrospectively with the cumulative effect of initially applying the standards at the date of initial adoption. 13

14 Things to Consider: Step 1 Step 1 Identify Contracts with a Customer Contracts that are within scope Combining contracts Contract modifications 14

15 Things to Consider: Step 2 Step 2 Identify the Performance Obligations in the Contract Identifying performance obligations Performance obligations not explicitly stated within the contract Performance obligations to exclude Distinct goods or services Goods or services separately identifiable for other promises in the contract 15

16 Things to Consider: Step 3 Step 3 Determine the Transaction Price Possible variable amounts to estimate Methods used to estimate a variable amount and reassessment Financing terms within the contract Non-cash consideration Consideration payable to the customer 16

17 Things to Consider: Step 4 Step 4 Allocate the Transaction Price to the Separate Performance Obligations Allocation of transaction price Standalone selling price determination Unobservable selling prices Allocating discounts 17

18 Things to Consider: Step 5 Step 5 Recognize Revenue with the Entity Satisfies Each Performance Obligation Over-time recognition Point-in-time recognition Customer control Methods used to measure progress 18

19 Costs to Obtain or Fulfill a Contract There are two methods to account for costs to obtain or fulfill a contract with a customer: Incremental costs of obtaining a contract Costs that the entity would not have incurred if the contract was not obtained. Recognize as an asset costs that are expected to be recovered. 19

20 Costs to Obtain or Fulfill a Contract (Con t.) There are two methods to account for costs to obtain or fulfill a contract with a customer: Costs to fulfill a contract Other specified guidance will apply (internal use software, inventory, etc.) If other guidance is not present, an asset will be recognized if the costs are directly related to the contract, the costs generate or enhance resources of the entity to be used to satisfy performance obligations in the future, and the costs are expected to be recovered. 20

21 Things to Consider Sale with right of return Warranties Principal vs. agent Customer options for additional goods or services Customers unexercised rights Nonrefundable upfront fees Licensing Repurchase agreements Consignment arrangements Bill-and-hold arrangements 21

22 Things to Consider: Disclosure Disclosure of qualitative and quantitative information: Contracts with customers Disaggregation of revenue Contract balances Performance obligations including transaction price allocated to remaining performance obligations 22

23 Things to Consider: Disclosure (Con t.) Disclosure of qualitative and quantitative information: Significant judgments Determining the timing of satisfaction of performance obligations Determining the transaction price and amounts allocated to performance obligations Assets recognized from the costs to obtain or fulfill a contract 23

24 Manufacturing Considerations Determining transfer of control Production of customized products Volume discounts Warranties 24

25 Retail Considerations Customer incentives Coupons Rebates Loyalty programs Gift cards Licenses and royalties Warranties 25

26 Construction Considerations Combining contracts Price changes Claims Financing components Scope changes Contract costs Loss contracts 26

27 Technology Considerations Multipleelement arrangements Post-contract customer support Extendedpayment terms Licenses Performance bonuses IP 27

28 Implementation Planning Internal task force Education Assess all revenue streams and potential impacts Apply new rules to contracts within scope Internal control design Impact on IT Communication with all stakeholders Parallel revenue schedules and aggregation of information needed for disclosure 28

29 Lease Accounting 29

30 Leases - Overview and Background 30

31 Leases - Overview and Background (Con t.) Accounting Standard Update The result of a joint project by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) The goal of the new standards: transparency and comparability 31

32 Scope and Definition of a Lease The new standard applies to leases of all identified assets except: Leases of inventory, assets under construction, intangible assets and biological assets, including timber Leases to explore for or use minerals, oil, natural gas, and similar non-regenerative resources (including the intangible right to explore for those resources and the rights to use the land) 32

33 Scope and Definition of a Lease (Con t.) A contract is or contains a lease if it conveys the right to control the use of identified property, plant or equipment (an identified asset) for a period of time in exchange for consideration 33

34 Scope and Definition of a Lease (Con t.) Right-of-Use Model 34

35 Scope and Definition of a Lease (Con t.) Lease and Non-Lease Components Many contracts contain leases (lease components) and agreements to purchase or sell other goods or services (non-lease components) Non-lease components are identified and accounted for separately under other applicable Generally Accepted Accounting Principles (GAAP) Maintenance activities are considered non-lease components 35

36 Scope and Definition of a Lease (Con t.) Lease and Non-Lease Components Lessees allocate consideration in the contract to lease and non-lease components on a relative standalone price basis, unless a practical expedient is elected Lessees can make a policy election (by class of underlying asset) to account for each lease component and its related non-lease component as a single lease component 36

37 Scope and Definition of a Lease (Con t.) Lease Term and Lease Payments Lease term includes any non-cancelable periods Reasonably certain is a high threshold for including optional periods (e.g., options to extend or terminate a lease) Reasonably certain = reasonably assured Lease payments consistent with the lease term determination * Include only if reasonably certain of exercise ** Include unless reasonably certain not to be exercised Also includes fees paid by the lessee to the owners of a specialpurpose entity for structuring the transaction 37

38 Lease Classification - Operating vs. Finance At lease commencement, a lessee and a lessor classify a lease using the following criteria: The lease transfers ownership of the underlying asset to the lessee by end of the lease term The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise The lease term is for the major part of the remaining economic life of the underlying asset* * Not applicable for leases that commence at, or near the end of, the underlying asset s economic life 38

39 Lease Classification - Operating vs. Finance (Con t.) At lease commencement, a lessee, and a lessor classify a lease using the following criteria: The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals, or exceeds substantially, all of the fair value of the underlying asset (New criterion) The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of lease term 39

40 Lease Classification - Operating vs. Finance (Con t.) A lease that does not meet any of the criteria is an operating lease. A lease that meets any of the criteria is a finance lease. Short-term lease exemption: Lease term of 12 months or less and no purchase option that the lessee is reasonably certain to exercise Accounting policy election, by class of underlying asset Do not recognize lease assets or liabilities 40

41 Lessee Accounting Lease Term and Purchase Options Consider all relevant factors that create an economic incentive to exercise a renewal/purchase option Initial Measurement Include if reasonably certain will exercise Subsequent Measurement Lessee Reassess only upon the occurrence of a significant event/change in circumstances that is within the control of the lessee* Lessor Not required to reassess* 41

42 Lessee Accounting Variable Lease Payments (VLPs) Initial Measurement Only include VLPs that are linked to an index or a rate or are in-substance fixed payments. Subsequent Measurement Lessee Reassess VLPs based on an index or a rate only when the lessee remeasures the lease liability for other reasons (e.g., change in lease term)* Lessor Not required to reassess* 42

43 Lessee Accounting Lessee Recognition and Measurement Finance Lease Operating Lease Initial recognition and measurement Initially measure the right of use (ROU) asset 1 and lease liability at the present value of the lease payments not yet paid Subsequent measurement lease liability Use the effective interest method using the discount rate determined at lease commencement 2 to recognize interest expense and reduce the lease liability for the payments made Measure the lease liability at the present value of the remaining lease payments using the discount rate determined at lease commencement 2 1 Initial measurement of ROU asset also includes the lessee s initial direct costs and prepayments made to the lessor less lease incentives received from the lessor 2 As long as a reassessment has not occurred. 43

44 Lessee Accounting Lessee Recognition and Measurement (Con t.) Subsequent measurement -ROU asset Finance Lease Amortize the ROU asset, generally on a straightline basis, over the shorter of the lease term of its useful life; and record any impairment of the ROU asset Operating Lease Measure the ROU asset at the amount of the lease liability and adjust for cumulative prepaid or accrued rents (i.e., uneven rent payments), any lease incentives received, lessee initial direct costs; and record any impairment of the ROU asset Income Statement Effect Generally front-loaded expense Interest expense and amortization expense are recorded and presented separately Generally straight-line expense A single lease expense is recognized 1 Initial measurement of ROU asset also includes the lessee s initial direct costs and prepayments made to the lessor less lease incentives received from the lessor 2 As long as a reassessment has not occurred. 44

45 Lessee Accounting - Lessee Presentation ROU asset Lease ROU asset can be presented separately or together with other assets If not presented separately, disclose the line item where they are presented and the amount of lease ROU assets Finance lease ROU assets are prohibited from being presented in the same line item as operating lease ROU assets Lease liability Lease liabilities can be presented separately or together with other liabilities If not presented separately, disclose the line item where they are presented and the amount of lease liabilities Finance lease liabilities are prohibited from being presented in the same line item as operating lease liabilities 45

46 Lessee Accounting - Lessee Presentation (Con t.) Income statement Finance lease: Lease-related interest expense and amortization of the ROU assets are presented in a manner consistent with how the entity presents interest expense and depreciation or amortization of similar assets Operating lease: Lease expense is included in income from continuing operations Statement of cash flows Finance lease: Principal portion of payments are financing activities Interest portion of payments in accordance with ASC 230, Statement of Cash Flows Operating lease: All lease payments are operating activities, except those payments made to bring an asset to the condition and location necessary for its intended use, which is an investing activity Both lease types: Lease payments for short-term leases and variable lease payments (not included in the lease liability) are operating activities Supplemental non-cash disclosure of new leases 46

47 Lessee Financial Statement Disclosures Qualitative Nature of leases Leases that have not yet commenced but that create significant rights and obligations of the lessee Significant assumptions and judgments made in application Main terms and conditions of any sale and leaseback transactions Whether an accounting policy election was made for the short-term lease exemption Finance lease expense, segregated between amortization and interest Operating lease cost Short-term lease cost Variable lease cost Sublease income Gains and losses arising from sale and leaseback transactions Lease payments maturity analysis (similar to that in Topic 840 disclosures) Quantitative Separately for Finance and Operating leases: - Cash paid for amounts included in lease liabilities, segregated between operating and financing - Lease liabilities arising from obtaining ROU assets - Weighted-average remaining lease term - Weighted-average discount rate for leases 47

48 Lessee Accounting Example - Difference in Expense Recognition A lessee enters into a five-year agreement to make the following payments each year: The organization assumes a 7% discount rate for the calculation of the present value of the future payments. There are no renewal periods, purchase options, or other factors to take into consideration for the initial measurement of the present value of future lease payments. Calculation of the present value of future lease payments is $792,

49 Lessee Accounting Example - Difference in Expense Recognition (Con t.) The example below shows the subsequent accounting and impact to the expense recognition for each lease: A - The effective-interest method is used to calculate the lease liability, regardless of the type of lease. B - Amortization is on a straight-line basis (similar to other nonfinancial assets). C - For operating leases, only straight-line lease expense is recognized each year. 49

50 Financial Statement Impact The changes brought about by this new ASU could also have a significant impact on many metrics that organizations use. A few metrics that could be affected are listed below. Metric Leverage Ratio Current Ratio Debt to EBITDA Return on Assets Definition Debt/Equity Current Assets/Current Liabilities Debt/EBITDA Net Income/Total Assets Discuss with all stakeholders the impact that these changes will have and how agreements should be amended or redefined in order to better align with operational and reporting needs. 50

51 Effective Date and Transition Fiscal years beginning after December 15, 2018 Public entity A not-for-profit entity that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market An employee benefit plan that files financial statements with the SEC Fiscal years beginning after December 15, 2019 and interim periods within fiscal years beginning after December 15, 2020 All other entities Standard is applied as of the beginning of the earliest comparative period presented in the financial statements 51

52 Effective Date and Transition (Con t.) Lessees and lessors are required to adopt the new standard using a modified retrospective transition approach Certain transition relief is available Certain disclosures are required in accordance with ASC 250, Accounting Changes and Error Corrections 52

53 Effective Date and Transition (Con t.) All entities may elect to apply all of the following practical expedients (elected as a package and applied to all leases) not to reassess: Whether any expired or existing contracts are, or contain leases Lease classification for any expired or existing leases and all existing leases that were classified as capital leases will be classified as financing leases Initial direct costs for any existing leases (i.e., whether those costs would have qualified for capitalization under the new leases standard) 53

54 Effective Date and Transition (Con t.) All entities can also elect for all leases to (1) use hindsight in determining the lease term when considering lease options to extend or terminate the lease and to purchase the underlying asset and (2) assess impairment of ROU assets Election could be made separately, or in conjunction, with the package of practical expedients above 54

55 What to Do Now! Here are the steps you should take now: 1. Gain an understanding of the FASB lease update. 2. Inventory your leases. 3. Establish software/tracking assistance. 4. Educate stakeholders of your organization. 5. Have a plan in place. 55

56 Other Accounting Standards Updates 56

57 Other Accounting Standards Updates Accounting Standard Update ASU Income Taxes: Balance Sheet Classification of Deferred Taxes Effective Date Public Entities Fiscal years beginning after December 15, 2016 Effective Date All Others Fiscal years beginning after December 15, 2017 ASU Recognition and Measurement of Financial Assets and Financial Liabilities Fiscal years beginning after December 15, 2017 Fiscal years beginning after December 15,

58 Other Accounting Standards Updates (Con t.) Accounting Standard Update ASU Intangibles Goodwill and Other (Topic 350); Business Combinations (Topic 805); Consolidation (Topic 810); Derivatives and Hedging (Topic 815): Effective Date and Transition Guidance Effective Date Public Entities Effective upon issuance Effective Date All Others Effective upon issuance ASU Liabilities Extinguishments of Liabilities (Subtopic ) Fiscal years beginning after December 15, 2017 (including certain not-forprofit entities, and certain employee benefit plans) Fiscal years beginning after December 15,

59 Other Accounting Standards Updates (Con t.) Accounting Standard Update ASU Derivatives and Hedging (Topic 815) Effective Date Public Entities Fiscal years beginning after December 15, 2016 Effective Date All Others Fiscal years beginning after December 15, 2017 ASU Investments Equity Method and Joint Ventures (Topic 323) Fiscal years beginning after December 15, 2016 (early adoption permitted) Fiscal years beginning after December 15, 2016 (early adoption permitted) ASU Compensation Stock Compensation (Topic 718) Fiscal years beginning after December 15, 2016 Fiscal years beginning after December 15,

60 Other Accounting Standards Updates (Con t.) Accounting Standard Update ASU Financial Instruments Credit Losses (Topic 326) Effective Date Public Entities Fiscal years beginning after December 15, 2019 Effective Date All Others Fiscal years beginning after December 15, 2020 ASU Not-for-profit entity (Topic 958): Presentation of Financial Statements for Not-forprofit entities N/A Fiscal years beginning after December 15, 2018 ASU Statement of Cash Flows (Topic 230) Fiscal years beginning after December 15, 2017 Fiscal years beginning after December 15,

61 Other Accounting Standards Updates (Con t.) Accounting Standard Update Effective Date Public Entities Effective Date All Others ASU Income Taxes (Topic 740) Fiscal years beginning after December 15, 2017 Fiscal years beginning after December 15, 2018 ASU Consolidation Topic (810) Fiscal years beginning after December 15, 2016 Fiscal years beginning after December 15,

62 Proposed Standards 62

63 Proposed Standards Proposed Standard Proposed Statement of Financial Accounting Concepts Statement # 8 Conceptual Framework for Financial Reporting Proposed ASU Technical Correction to Update No , Not-for-Profit entities (Topic 958): Presentation of Financial Statements of Not-for- Profit Entities Endowment Reporting Comment Letter Date November 9, 2016 November 11, 2016 Proposed ASU Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities November 22,

64 Proposed Standards (Con t.) Proposed Standard Comment Letter Date Proposed ASU Receivables Nonrefundable Fees and Other Costs (Subtopic ): Premium Amortization on Purchased Callable Debt Securities November 28, 2016 Proposed ASU Financial Services Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts December 15,

65 Questions? 65

66 Contact Information Staci L. Brogan, CPA Shareholder Schneider Downs & Co., Inc. One PPG Place, Suite 1700 Pittsburgh, PA (412) Patricia R. Giudici, CPA Audit Senior Manager Schneider Downs & Co., Inc. One PPG Place, Suite 1700 Pittsburgh, PA (412)

Lease Accounting and simplease Accounting Updates. Trevor Warren & Jason Reljac

Lease Accounting and simplease Accounting Updates. Trevor Warren & Jason Reljac Lease Accounting and simplease Accounting Updates Trevor Warren & Jason Reljac Today s Agenda Overview Scope and Definition of a Lease Lease Classification Lessee Accounting Financial Statement Impact

More information

Accounting and Auditing. Norman Mosrie, CPA, FMFMA, CHFP James Sutherland, CPA

Accounting and Auditing. Norman Mosrie, CPA, FMFMA, CHFP James Sutherland, CPA Accounting and Auditing Norman Mosrie, CPA, FMFMA, CHFP James Sutherland, CPA Leases (ASU 2016-02; Topic 842) A lease contract conveys the right to use an asset (the underlying asset) for a period of time

More information

Is Your Operating Lease An Asset or Liability? It s Now Both

Is Your Operating Lease An Asset or Liability? It s Now Both MFM Annual Conference Is Your Operating Lease An Asset or Liability? It s Now Both 23 May 2016-1:30 pm 2:20 pm Disclaimer These slides are for educational purposes only and are not intended, and should

More information

Implementing the New Lease Guidance

Implementing the New Lease Guidance Implementing the New Lease Guidance October 22, 2018 2018 Crowe LLP 2018 Crowe LLP Agenda Background Scope Effective dates & transition requirements Lessee accounting model Lessor accounting model Specialized

More information

2018 Accounting & Auditing Update P R E S E N T E D B Y : D A N I E L L E Z I M M E R M A N & A N D R E A S A R T I N

2018 Accounting & Auditing Update P R E S E N T E D B Y : D A N I E L L E Z I M M E R M A N & A N D R E A S A R T I N 2018 Accounting & Auditing Update P R E S E N T E D B Y : D A N I E L L E Z I M M E R M A N & A N D R E A S A R T I N AGENDA Leases FASB & GASB Revenue Recognition FASB 2 FASB ASU 2016-02, Leases (Topic

More information

New leases standard ASC 842 Lessee - operating leases. Itai Gotlieb, Partner, Professional Practice July 2017

New leases standard ASC 842 Lessee - operating leases. Itai Gotlieb, Partner, Professional Practice July 2017 ASC 842 Lessee - operating leases Itai Gotlieb, Partner, Professional Practice July 2017 Overview Under Accounting Standards Codification (ASC) 842, Leases, lessees recognize assets and liabilities for

More information

The New Lease Accounting Standard. Hunter Mink, CPA, CCIFP Brian Rosenberg, CPA, MBA

The New Lease Accounting Standard. Hunter Mink, CPA, CCIFP Brian Rosenberg, CPA, MBA The New Lease Accounting Standard Hunter Mink, CPA, CCIFP Brian Rosenberg, CPA, MBA 1 Agenda Introduction Lease Identification and Classification Lessee Accounting Other Considerations Disclosures Impact

More information

Something Borrowed, Something New Get Ready for the New Lease Accounting Standard

Something Borrowed, Something New Get Ready for the New Lease Accounting Standard April 2016 Something Borrowed, Something New Get Ready for the New Lease Accounting Standard By Scott G. Lehman, CPA, and David E. Wentzel, CPA Audit / Tax / Advisory / Risk / Performance Smart decisions.

More information

Lease Accounting Standard Update ASU Presented by: Nicholas Hoefel, CPA Manager, Audit Services Group

Lease Accounting Standard Update ASU Presented by: Nicholas Hoefel, CPA Manager, Audit Services Group Lease Accounting Standard Update ASU 2016-02 Presented by: Nicholas Hoefel, CPA Manager, Audit Services Group 1 Overview Introduction Background and current environment Effective dates and transition Key

More information

Defining Issues. FASB Completes Technical Redeliberations on Leases. October 2015, No Key Facts. Key Impacts

Defining Issues. FASB Completes Technical Redeliberations on Leases. October 2015, No Key Facts. Key Impacts Defining Issues October 2015, No. 15-47 FASB Completes Technical Redeliberations on Leases The FASB met on October 7 to discuss comments received and related follow-up issues on the external review of

More information

The new accounting standard for leases. 27 March 2017

The new accounting standard for leases. 27 March 2017 The new accounting standard for leases 27 March 2017 Disclaimer Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity.

More information

Lease & Finance Accountants Conference. September The Westin Charlotte Charlotte, NC

Lease & Finance Accountants Conference. September The Westin Charlotte Charlotte, NC Lease & Finance Accountants Conference September 11-13 The Westin Charlotte Charlotte, NC H A N D O U T S Basic Principles of Lessors under ASC 842 Mamta Shori, Wells Fargo Equipment Finance Joe Sebik,

More information

Lease accounting scope & impacts

Lease accounting scope & impacts Leasing Lease accounting scope & impacts Scope What s in? All industries, all entities Arrangements that meet the definition of a lease Embedded leases within other arrangements What s out? Leases of:

More information

Deeper Dive Leases. Overview

Deeper Dive Leases. Overview Deeper Dive Leases Presented by: Shaun Johnson, CPA Dingus, Zarecor & Associates PLLC Overview Effective dates Big picture Objective, impact, and implementation Applicability and definition Initial recognition

More information

Accounting Update. Anne Cloutier, CPA, FHFMA Principal March 27, 2015

Accounting Update. Anne Cloutier, CPA, FHFMA Principal March 27, 2015 Accounting Update Anne Cloutier, CPA, FHFMA Principal March 27, 2015 Current Accounting for Leases Capital leases - a lessee recognizes leased assets and liabilities on the balance sheet. Operating leases

More information

LEASES WHERE ARE WE? Steve Rathjen

LEASES WHERE ARE WE? Steve Rathjen LEASES WHERE ARE WE? Steve Rathjen 267 256-3110 srathjen@kpmg.com Agenda Project status Lease definition and classification Lessee accounting Lessor accounting Presentation, disclosures, and transition

More information

Executive Summary. New leases standard Lessees

Executive Summary. New leases standard Lessees Executive Summary December 2018 The new leases standard focuses on increased transparency and comparability providing financial statement users with more information about an entity s leasing activities.

More information

Impact of lease accounting changes to corporate real estate

Impact of lease accounting changes to corporate real estate Impact of lease accounting changes to corporate real estate Overview In February 2016, the Financial Accounting Standards Board (FASB) issued its long-awaited revision to lease accounting Accounting Standards

More information

FSA Faculty Consortium Technical Accounting Update. Bob Uhl, partner, Deloitte & Touche LLP

FSA Faculty Consortium Technical Accounting Update. Bob Uhl, partner, Deloitte & Touche LLP FSA Faculty Consortium Technical Accounting Update Bob Uhl, partner, Deloitte & Touche LLP Deloitte University May 30, 2014 Acronyms Acronym ASC ASU ED FASB IASB IFRS U.S. GAAP Full Form Accounting Standards

More information

Accounting and Auditing Update. Paul Lundy

Accounting and Auditing Update. Paul Lundy Accounting and Auditing Update Paul Lundy Leases: Not Just for the Footnotes Anymore Significant Financial Statement Impact New lease standard generally requires all leases to be capitalized and recognized

More information

Technical Line FASB final guidance

Technical Line FASB final guidance No. 2016-09 14 April 2016 Technical Line FASB final guidance How the FASB s new leases standard will affect health care entities In this issue: Overview... 1 Key considerations... 3 Scope and scope exceptions...

More information

ASC 842: Leases. Presented by: Maxwell Locke & Ritter LLP June 15, Maxwell Locke & Ritter

ASC 842: Leases. Presented by: Maxwell Locke & Ritter LLP June 15, Maxwell Locke & Ritter ASC 842: Leases Presented by: Maxwell Locke & Ritter LLP June 15, 2018 The New Lease Standard FASB ASC 842, Leases Supersedes FASB ASC 840, Leases Effective for calendar year-end public companies in 2019;

More information

FASB/IASB Update Part II

FASB/IASB Update Part II American Accounting Association FASB/IASB Update Part II Tom Linsmeier FASB Member August 3, 2014 The views expressed in this presentation are those of the presenters. Official positions of the FASB/IASB

More information

Leases: Overview of the new guidance

Leases: Overview of the new guidance Leases: Overview of the new guidance Prepared by: Richard Stuart, Partner, National Professional Standards Group, RSM US LLP richard.stuart@rsmus.com, +1 203 905 5027 March 2, 2016 Introduction On February

More information

Edison Electric Institute and American Gas Association New Lease Standard

Edison Electric Institute and American Gas Association New Lease Standard Edison Electric Institute and American Gas Association New Lease Standard May 16, 2016 Disclaimer The information contained herein is of a general nature and is not intended to address the circumstances

More information

Proposed New Accounting Standards For Leases

Proposed New Accounting Standards For Leases Relationships backed by performance. Proposed New Accounting Standards For Leases Doug Richardson Live Seminar 9:00am 10:30am June 21 2012 Overview and Background Leases serve a vital role in many entities

More information

Technical Line FASB final guidance

Technical Line FASB final guidance No. 2019-01 3 January 2019 Technical Line FASB final guidance How the new leases standard affects automotive entities In this issue: Overview... 1 Recent standard setting activity... 2 Key considerations...

More information

Center for Plain English Accounting

Center for Plain English Accounting Report April 18, 2018 Center for Plain English Accounting AICPA s National A&A Resource Center Debits and Credits Associated with New Lease Accounting Standard CPEA Lease Standard Implementation Series

More information

Defining Issues May 2013, No

Defining Issues May 2013, No Defining Issues May 2013, No. 13-24 FASB and IASB Issue Revised Exposure Drafts on Lease Accounting The FASB and IASB (the Boards) recently issued revised joint exposure drafts (EDs) on proposed changes

More information

Technical Line FASB final guidance

Technical Line FASB final guidance No. 2016-11 14 April 2016 Technical Line FASB final guidance How the FASB s new leases standard will affect real estate entities In this issue: Overview... 1 Key considerations... 2 Scope and scope exceptions...

More information

Technical Line FASB final guidance

Technical Line FASB final guidance No. 2018-18 13 December 2018 Technical Line FASB final guidance How the new leases standard affects life sciences entities In this issue: Overview... 1 Key considerations... 2 Scope and scope exceptions...

More information

Click to edit Master title style REVENUE RECOGNITION Understanding the New Revenue Recognition Standard ASC 606

Click to edit Master title style REVENUE RECOGNITION Understanding the New Revenue Recognition Standard ASC 606 Click to edit Master title style REVENUE RECOGNITION Understanding the New Revenue Recognition Standard ASC 606 9/7/2017 0 Agenda Overview of ASC 606 Review of the five-step process Accounting for contract

More information

Lease Accounting and Loan Covenants: What is the Impact?

Lease Accounting and Loan Covenants: What is the Impact? Lease Accounting and Loan Covenants: What is the Impact? Monday June 26, 2017 9:15 AM 10:30 AM Presented by: Charlie Shannon Partner Moss Adams LLP 8750 N. Central Expressway, Suite 300 Dallas, TX 75231

More information

IFRS 15. Revenue from Contracts with Customers. Presented by CPA Dr. Peter Njuguna

IFRS 15. Revenue from Contracts with Customers. Presented by CPA Dr. Peter Njuguna IFRS 15 Revenue from Contracts with Customers Presented by CPA Dr. Peter Njuguna Introduction Revenue is income from ordinary activities. A contract has rights and obligations between two or more parties.

More information

Accounting and Auditing Update. Tennessee Chapter of hfma Spring Institute 2016 Presented by William C. Matheney FHFMA CPA and Meredith P.

Accounting and Auditing Update. Tennessee Chapter of hfma Spring Institute 2016 Presented by William C. Matheney FHFMA CPA and Meredith P. Accounting and Auditing Update Tennessee Chapter of hfma Spring Institute 2016 Presented by William C. Matheney FHFMA CPA and Meredith P. Cate Today s Objectives Present an overview of pertinent recently

More information

47.1% of organizations concerned about their ability to implement

47.1% of organizations concerned about their ability to implement Leases: Not Just for the 1 Lease Standard - Statistics 10 year project In 2014, $3.0 trillion in off-balance sheet lease commitments 47.1% of organizations concerned about their ability to implement 2

More information

Welcome to Webinar: Implementing FASB s Updated Lease Accounting Standard ASU (Topic 842)

Welcome to Webinar: Implementing FASB s Updated Lease Accounting Standard ASU (Topic 842) Welcome to Webinar: Implementing FASB s Updated Lease Accounting Standard ASU 2016-02 (Topic 842) Presented by: Gelman, Rosenberg & Freedman CPAs Please note: Use the Question panel to speak with the administrator

More information

Technical Line FASB final guidance

Technical Line FASB final guidance No. 2018-08 20 September 2018 Technical Line FASB final guidance How the new leases standard affects engineering and construction entities In this issue: Overview... 1 Key considerations... 2 Scope and

More information

GAAP Update SCHFMA 2016 Fall Institute

GAAP Update SCHFMA 2016 Fall Institute GAAP Update SCHFMA 2016 Fall Institute Ken Conner, CPA Shareholder Tiffany Brackett, CPA Senior Manager This material was used by Elliott Davis Decosimo during an oral presentation; it is not a complete

More information

In December 2003 the IASB issued a revised IAS 17 as part of its initial agenda of technical projects.

In December 2003 the IASB issued a revised IAS 17 as part of its initial agenda of technical projects. IFRS Standard 16 Leases In April 2001 the International Accounting Standards Board (IASB) adopted IAS 17 Leases, which had originally been issued by the International Accounting Standards Committee (IASC)

More information

Lease Accounting Is Final Time to Prepare for Implementation

Lease Accounting Is Final Time to Prepare for Implementation Copyright 2016 by the Construction Financial Management Association (CFMA). All rights reserved. This article first appeared in CFMA Building Profits (a member-only benefit) and is reprinted with permission.

More information

GASB 87 - Leases. South Carolina Association of CPAs Fall Fest November 16, 2018 Mauldin & Jenkins

GASB 87 - Leases. South Carolina Association of CPAs Fall Fest November 16, 2018 Mauldin & Jenkins November 16, 2018 Mauldin & Jenkins 800-277-0050 www.mjcpa.com GASB 87 - Leases Effective for periods beginning after December 15, 2019 - December 31, 2020 or June 30, 2021 or September 30, 2021 Amends

More information

Leases ASU September 20, 2017

Leases ASU September 20, 2017 Leases ASU 2016-02 September 20, 2017 Meet the Speakers Tonisha Spratte, CPA Senior Accountant Cherry Bekaert tspratte@cbh.com Matthew Mars Senior Accountant Cherry Bekaert mmars@cbh.com Agenda What is

More information

Accounting Standards Update

Accounting Standards Update Duquesne University 6th Annual Accounting CPE Conference Accounting Standards Update Amy Park, FASB Practice Fellow November 16, 2017 The views expressed in this presentation are those of the presenter.

More information

No February Leases (Topic 842) An Amendment of the FASB Accounting Standards Codification

No February Leases (Topic 842) An Amendment of the FASB Accounting Standards Codification No. 2016-02 February 2016 Leases (Topic 842) An Amendment of the FASB Accounting Standards Codification The FASB Accounting Standards Codification is the source of authoritative generally accepted accounting

More information

Technical Line FASB final guidance

Technical Line FASB final guidance No. 2018-15 6 December 2018 Technical Line FASB final guidance How the new leases standard affects consumer products and retail entities In this issue: Overview... 1 Recent standard-setting activity...

More information

IFRS Project Insights Leases

IFRS Project Insights Leases IFRS Project Insights Leases The IASB and FASB ( the Boards ) published a Discussion Paper (DP) setting out a proposed lessee accounting model in March 2009. The proposed accounting model has evolved since

More information

In December 2003 the Board issued a revised IAS 17 as part of its initial agenda of technical projects.

In December 2003 the Board issued a revised IAS 17 as part of its initial agenda of technical projects. IFRS 16 Leases In April 2001 the International Accounting Standards Board (the Board) adopted IAS 17 Leases, which had originally been issued by the International Accounting Standards Committee (IASC)

More information

CPE regulations require online participants to take part in online questions

CPE regulations require online participants to take part in online questions KPMG s CFO Financial Forum Webcast FASB/IASB Revised Lease Accounting Exposure Drafts A Detailed Look Part III: Lessor Accounting June 25, 2013 Administrative CPE regulations require online participants

More information

New Lease Accounting Standards: Love at First Sight or Heartbreak?

New Lease Accounting Standards: Love at First Sight or Heartbreak? New Lease Accounting Standards: Love at First Sight or Heartbreak? February 14, 2019 To Receive CPE Credit Individuals Participate in entire webinar Answer polls when they are provided Groups Group leader

More information

Lease Update. June 2017 Addison, Texas

Lease Update. June 2017 Addison, Texas Lease Update June 2017 Addison, Texas William Bill Schneider CPA, CGMA Bill is an Audit Director at AT&T. AT&T delivers advanced mobile services, next-generation TV, highspeed internet and smart solutions

More information

Sri Lanka Accounting Standard - SLFRS 16. Leases

Sri Lanka Accounting Standard - SLFRS 16. Leases Sri Lanka Accounting Standard - SLFRS 16 Leases CONTENTS from paragraph SRI LANKA ACCOUNTING STANDARD - SLFRS 16 LEASES INTRODUCTION OBJECTIVE 1 SCOPE 3 RECOGNITION EXEMPTIONS 5 IDENTIFYING A LEASE 9 Separating

More information

International Financial Reporting Standard 16 Leases. Objective. Scope. Recognition exemptions (paragraphs B3 B8) IFRS 16

International Financial Reporting Standard 16 Leases. Objective. Scope. Recognition exemptions (paragraphs B3 B8) IFRS 16 International Financial Reporting Standard 16 Leases Objective 1 This Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. The objective is to ensure

More information

Topic 842- Leases Making The Transition

Topic 842- Leases Making The Transition Topic 842- Leases Making The Transition K-deep Dhaliwal, Partner, Moss Adams LLP Adam Hite, Senior Manager, Moss Adams LLP The material appearing in this presentation is for informational purposes only

More information

On the Horizon: Leases and Fiduciary Responsibilities

On the Horizon: Leases and Fiduciary Responsibilities On the Horizon: Leases and Fiduciary Responsibilities Dean Michael Mead, Research Manager Florida School Finance Officers Association November 11, 2015 The views expressed in this presentation are those

More information

Financial reporting developments. A comprehensive guide. Lease accounting. Accounting Standards Codification 842, Leases.

Financial reporting developments. A comprehensive guide. Lease accounting. Accounting Standards Codification 842, Leases. Financial reporting developments A comprehensive guide Lease accounting Accounting Standards Codification 842, Leases January 2019 To our clients and other friends Accounting Standard Codification (ASC)

More information

FASB and IASB Continue Making Decisions on Lease Accounting

FASB and IASB Continue Making Decisions on Lease Accounting Accounting Journal Entry FASB and IASB Continue Making Decisions on Lease Accounting March 28, 2011 At recent meetings, the FASB and IASB (the boards ) have continued to make progress on the leases project,

More information

Financial Computer Systems Inc. (203)

Financial Computer Systems Inc.  (203) Introduction to ASC 842 and EZLease Financial Computer Systems Inc. www.ezlease.net (203) 652-1375 The road to ASC 842 Begun in July 2006; joint project of FASB & IASB Primary purpose: Put lessee operating

More information

Agenda. Monday, August 14, Section One The FASB s New Lease Accounting Standard. 8:30 Introduction to the new Lease Accounting Model Overview

Agenda. Monday, August 14, Section One The FASB s New Lease Accounting Standard. 8:30 Introduction to the new Lease Accounting Model Overview Lease and Revenue Recognition Accounting Workshop Hosted by: Smith and Gesteland August 14 15, 2017 Madison Marriott West (This workshop qualifies for 16 hours of CPE) Monday, August 14, 2017 Agenda Section

More information

AGC Financial Issues Committee

AGC Financial Issues Committee AGC Financial Issues Committee FASB Update Cullen D. Walsh, FASB Assistant Director January 8, 2015 The views expressed in this presentation are those of the presenter and are intended for discussion purposes

More information

Technical Line FASB final guidance

Technical Line FASB final guidance No. 2016-03 31 March 2016 Technical Line FASB final guidance A closer look at the new leases standard The new leases standard requires lessees to recognize most leases on their balance sheets. What you

More information

GASB Update. Airports Council International North America 2017 Finance Committee Workshop. Blake Rodgers, Senior Manager September 17, 2017

GASB Update. Airports Council International North America 2017 Finance Committee Workshop. Blake Rodgers, Senior Manager September 17, 2017 GASB Update Airports Council International North America 2017 Finance Committee Workshop Blake Rodgers, Senior Manager September 17, 2017 Agenda High Level Overview of GASB Statement No. 87, Leases Other

More information

IFRS 16 LEASES. Page 1 of 21

IFRS 16 LEASES. Page 1 of 21 IFRS 16 LEASES OBJECTIVE The objective is to ensure that lessees and lessors provide relevant information in a manner that faithfully represents those transactions. This information gives a basis for users

More information

Brad Bonde, CPA Senior Manager, HC Services/Audit & Advisory

Brad Bonde, CPA Senior Manager, HC Services/Audit & Advisory Brad Bonde, CPA Senior Manager, HC Services/Audit & Advisory Overview Background Improving Lease Accounting Scope Accounting Models Disclosures Effective Dates 2 Background Source - FASB 3 QUIZ What amount

More information

Financial reporting developments. A comprehensive guide. Lease accounting. Accounting Standards Codification 842, Leases.

Financial reporting developments. A comprehensive guide. Lease accounting. Accounting Standards Codification 842, Leases. Financial reporting developments A comprehensive guide Lease accounting Accounting Standards Codification 842, Leases October 2018 To our clients and other friends Accounting Standard Codification (ASC)

More information

Technical Line FASB final guidance

Technical Line FASB final guidance No. 2018-10 11 October 2018 Technical Line FASB final guidance How the new leases standard affects airlines In this issue: Overview... 1 Key considerations... 2 Scope and scope exceptions... 2 Definition

More information

Clay L. Pilgrim, CPA, CFE, CFF. What Financial Statement Preparers Need to Know About GASB s New Lease Accounting Proposal.

Clay L. Pilgrim, CPA, CFE, CFF. What Financial Statement Preparers Need to Know About GASB s New Lease Accounting Proposal. Clay L. Pilgrim, CPA, CFE, CFF What Financial Statement Preparers Need to Know About GASB s New Lease Accounting Proposal Today s Presenter Clay Pilgrim, CPA, CFE, CFF is a partner with Rushton & Company,

More information

IMPACTS OF NEW LEASE ACCOUNTING STANDARD WHAT DOES IT MEAN TO ME? Jessica Richter, CPA.CITP, CISA Jamie Becker June 11, 2018

IMPACTS OF NEW LEASE ACCOUNTING STANDARD WHAT DOES IT MEAN TO ME? Jessica Richter, CPA.CITP, CISA Jamie Becker June 11, 2018 IMPACTS OF NEW LEASE ACCOUNTING STANDARD WHAT DOES IT MEAN TO ME? Jessica Richter, CPA.CITP, CISA Jamie Becker June 11, 2018 3 AGENDA ASC 842 Leases, ASU 2016-02 What s new Comparison with today s rules

More information

Annual Accounting and Auditing Update. 11 December 2015

Annual Accounting and Auditing Update. 11 December 2015 Annual Accounting and Auditing Update 11 December 2015 Disclaimer The views expressed by panelists are not necessarily those of Ernst & Young LLP. These slides are for educational purposes only and are

More information

Lease & Finance Accountants Conference. September The Westin Charlotte Charlotte, NC

Lease & Finance Accountants Conference. September The Westin Charlotte Charlotte, NC Lease & Finance Accountants Conference September 11-13 The Westin Charlotte Charlotte, NC H A N D O U T S EQUIPMENT LEASING AND FINANCE ASSOCIATION Transitioning to the ASC 842 Guidance Lessee Requirements

More information

4/4/2018. GASB's New Leases Standard

4/4/2018. GASB's New Leases Standard GASB's New Leases Standard April 4, 2018 1 TO RECEIVE CPE CREDIT Participate in entire webinar Answer polls when they are provided If you are viewing this webinar in a group Complete group attendance form

More information

IASB Staff Paper March 2011

IASB Staff Paper March 2011 IASB Staff Paper March 2011 Effect of board redeliberations on Exposure Draft Leases About this staff paper This staff paper indicates how the proposals in the Exposure Draft Leases would change as a result

More information

Measuring Lease Liabilities EQUIPMENT LEASING AND FINANCE ASSOCIATION

Measuring Lease Liabilities EQUIPMENT LEASING AND FINANCE ASSOCIATION Measuring Lease Liabilities EQUIPMENT LEASING AND FINANCE ASSOCIATION Presenters Kerrie Cadugan, Executive Director, EY Barbara Galaini, Chief Accounting Officer of the Americas, Avolon The views expressed

More information

New Accounting Rules for Nonfinancial Asset Sales

New Accounting Rules for Nonfinancial Asset Sales On February 22, 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-05, Other Income Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic

More information

NEW LEASE ACCOUNTING STANDARD

NEW LEASE ACCOUNTING STANDARD NEW LEASE ACCOUNTING STANDARD Accounting Standards Update (ASU) 2016-02, Leases & GASB 87, Leases LEASES Leases: Why a New Leases Standard? 1 IMPLEMENTATION TIMELINE January 2016 IASB issued IFRS 16, Leases

More information

Current Developments. FASB, AICPA and SEC. Jim Brendel, CPA, CFE March 1, 2013

Current Developments. FASB, AICPA and SEC. Jim Brendel, CPA, CFE March 1, 2013 Current Developments FASB, AICPA and SEC Jim Brendel, CPA, CFE March 1, 2013 Agenda FASB Developments Selected Projects and Initiatives Revenue Recognition Leases Impairment of Intangible Assets Other

More information

LEASES & HOT TOPICS PRESENTED BY: JASON MYERS & BRYAN CALLAHAN

LEASES & HOT TOPICS PRESENTED BY: JASON MYERS & BRYAN CALLAHAN LEASES & HOT TOPICS PRESENTED BY: JASON MYERS & BRYAN CALLAHAN LEASES PROJECT Summary of Key Changes & Impact 2 KEY CHANGES Lessee (the contractor usually) Requires recognition of most leases on their

More information

GASBs Presented by: William Blend, CPA, CFE

GASBs Presented by: William Blend, CPA, CFE GASBs 87-89 Presented by: William Blend, CPA, CFE Leases: Statement 87 Effective Date and General Implementation Effective for Florida fiscal year end 2021. Earlier application is encouraged. Leases should

More information

PRACTICAL TIPS FOR IMPLEMENTING THE NEW LEASE ACCOUNTING STANDARD

PRACTICAL TIPS FOR IMPLEMENTING THE NEW LEASE ACCOUNTING STANDARD PRACTICAL TIPS FOR IMPLEMENTING THE NEW LEASE ACCOUNTING STANDARD SHAUNA WATSON, VP, GLOBAL HEAD OF TECHNICAL ACCOUNTING MICHAEL ALLEN, PARTNER, TRANSACTION ADVISORY SERVICES 1. Overview of Accounting

More information

THE NEW LEASE ACCOUNTING STANDARD

THE NEW LEASE ACCOUNTING STANDARD THE NEW LEASE ACCOUNTING STANDARD May 30, 2018 BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part

More information

New Developments Summary

New Developments Summary July 10, 2018 NDS 2018-07 New Developments Summary Leases in transition New leasing standard provides detailed transition guidance Summary For most entities, one of the more complex aspects of implementing

More information

III-1. FASB/IASB DEVELOPMENTS. Presenters: Muneera S. Carr, Comerica Bank Joseph DiLeo, Deloitte & Touche Reto Micheluzzi, PricewaterhouseCoopers

III-1. FASB/IASB DEVELOPMENTS. Presenters: Muneera S. Carr, Comerica Bank Joseph DiLeo, Deloitte & Touche Reto Micheluzzi, PricewaterhouseCoopers III-1. FASB/IASB DEVELOPMENTS Presenters: Muneera S. Carr, Comerica Bank Joseph DiLeo, Deloitte & Touche Reto Micheluzzi, PricewaterhouseCoopers SEC Hot Topics Institute Dallas, TX September 8, 2016 FASB

More information

Preparing for the new ASC 842 Leasing Standard Challenges and Solutions. August 24, 2017

Preparing for the new ASC 842 Leasing Standard Challenges and Solutions. August 24, 2017 Preparing for the new ASC 842 Leasing Standard Challenges and Solutions August 24, 2017 Learning objectives Define leasing implications related to recently revised FASB standard Differentiate between new

More information

Headline Verdana Bold The evolutions of leases accounting under IFRS 16 Mariano Bruno, Carlo Laganà, Giuseppe Ambrosio, Deloitte & Touche S.p.A.

Headline Verdana Bold The evolutions of leases accounting under IFRS 16 Mariano Bruno, Carlo Laganà, Giuseppe Ambrosio, Deloitte & Touche S.p.A. SHIPPING AND THE LAW 7^ Edition 25-26 October 2016 NAPLES Headline Verdana Bold The evolutions of leases accounting under IFRS 16 Mariano Bruno, Carlo Laganà, Giuseppe Ambrosio, Deloitte & Touche S.p.A.

More information

Heads Up. FASB Draws a Bright Line Through Operating Leases Proposed ASU Revamps Lease. Accounting. The ED, released by the FASB as a proposed

Heads Up. FASB Draws a Bright Line Through Operating Leases Proposed ASU Revamps Lease. Accounting. The ED, released by the FASB as a proposed August 17, 2010 Volume 17, Issue 27 Heads Up In This Issue: Background Effective Date In a Nutshell Scope Lessee Accounting Lessor Accounting Presentation and Disclosures Transition The ED, released by

More information

New Accounting Rules for Revenue and Leases

New Accounting Rules for Revenue and Leases New Accounting Rules for Revenue and Leases CFMA Education Summit March 22, 2017 Presented by: Carole McNees, CPA, Partner, Plante & Moran, PLLC Recently released standards New guidance from the Financial

More information

Financial reporting developments. A comprehensive guide. Lease accounting. Accounting Standards Codification 842, Leases.

Financial reporting developments. A comprehensive guide. Lease accounting. Accounting Standards Codification 842, Leases. Financial reporting developments A comprehensive guide Lease accounting Accounting Standards Codification 842, Leases January 2018 To our clients and other friends Accounting Standard Codification (ASC)

More information

Summary of IFRS Exposure Draft Leases

Summary of IFRS Exposure Draft Leases The International Accounting Standards Board (IASB) recently issued a revised exposure draft (ED) relating to leases. Once these proposals are finalized the new guidance will replace the IAS 17 Leases.

More information

REAL ESTATE PERSPECTIVE ON NEW LEASE ACCOUNTING STANDARDS

REAL ESTATE PERSPECTIVE ON NEW LEASE ACCOUNTING STANDARDS VALUATION & ADVISORY REAL ESTATE PERSPECTIVE ON NEW LEASE ACCOUNTING STANDARDS BY JOHN CORBETT, MAI, ASA, FRICS AND MARC R. SHAPIRO, MAI, MRICS INTRODUCTION The Financial Accounting Standards Board (FASB)

More information

HKFRS 16 Leases sets out the principles for the recognition, measurement, presentation and disclosure

HKFRS 16 Leases sets out the principles for the recognition, measurement, presentation and disclosure HKFRS 16 Leases Introduction HKFRS 16 Leases sets out the principles for the recognition, measurement, presentation and disclosure of leases. The objective of HKFRS 16 is to ensure that lessees and lessors

More information

HOW TO JUMP START YOUR ASC 842 LEASE ACCOUNTING PROJECT WEBINAR MARCH

HOW TO JUMP START YOUR ASC 842 LEASE ACCOUNTING PROJECT WEBINAR MARCH HOW TO JUMP START YOUR ASC 842 LEASE ACCOUNTING PROJECT WEBINAR MARCH 14 2018 Today s Panelists Scott Vanlandingham Principal Consulting Iyaye Amabeoku Senior Manager Technical Accounting Michael Gregorski

More information

Exposure Draft 64 January 2018 Comments due: June 30, Proposed International Public Sector Accounting Standard. Leases

Exposure Draft 64 January 2018 Comments due: June 30, Proposed International Public Sector Accounting Standard. Leases Exposure Draft 64 January 2018 Comments due: June 30, 2018 Proposed International Public Sector Accounting Standard Leases This document was developed and approved by the International Public Sector Accounting

More information

In February 2016, FASB issued Accounting Standards. An Analysis of the New Sale and Leaseback Guidance. DEPARTMENTS I Accounting.

In February 2016, FASB issued Accounting Standards. An Analysis of the New Sale and Leaseback Guidance. DEPARTMENTS I Accounting. An Analysis of the New Sale and Leaseback Guidance By Josef Rashty In February 2016, FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). Topic 842 will supersede the existing lease

More information

ASC Topic 842 Leases. September 25 &

ASC Topic 842 Leases. September 25 & ASC Topic 842 Leases September 25 & 26 2017 This presentation is intended solely for the information and use of the EEI and AGA and is not intended to be and should not be used by anyone other than these

More information

IFRS Update Guy Thomas, CPA, CA

IFRS Update Guy Thomas, CPA, CA IFRS Update Guy Thomas, CPA, CA D&Co IFRS update Agenda 3 new standards under IFRS IFRS 9 Financial Instruments IFRS 15 Revenue from Contracts with Customers IFRS 16 Leases Agenda Some narrow scope amendments

More information

Topic 842 Technical Corrections Summary of Comments Received

Topic 842 Technical Corrections Summary of Comments Received Contact(s) David Hoyer Co-Author Ext. 462 Andy Bologna Co-Author Ext. 356 Thomas Faineteau Co-Author Ext. 362 Chris Roberge Co-Author Ext. 274 Amy Park Co-Author Ext. 476 Shayne Kuhaneck Assistant Director

More information

New Zealand Equivalent to International Financial Reporting Standard 16 Leases (NZ IFRS 16)

New Zealand Equivalent to International Financial Reporting Standard 16 Leases (NZ IFRS 16) New Zealand Equivalent to International Financial Reporting Standard 16 Leases (NZ IFRS 16) Issued February 2016 This Standard was issued on 11 February 2016 by the New Zealand Accounting Standards Board

More information

A New Lease on Life: The GASB s New Accounting for Leases

A New Lease on Life: The GASB s New Accounting for Leases Tuesday, May 23, 2017 2:00 3:15PM A New Lease on Life: The GASB s New Accounting for Leases MODERATOR Frances Lee Deputy Chief Financial Officer San Francisco Public Utilities Commission SPEAKERS Stephen

More information