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

Size: px
Start display at page:

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

Transcription

1 GASB's New Leases Standard April 4,

2 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 with Title & date of live webinar Your company name Your printed name, signature & address All group attendance sheets must be submitted to training@bkd.com within 24 hours of live webinar Answer polls when they are provided If all eligibility requirements are met, each participant will be ed their CPE certificate within 15 business days of live webinar Today s Presenters Christopher Telli, CPA, CIA Partner ctelli@bkd.com Deborah Beams, CPA Director dbeams@bkd.com 2

3 Background of Statement 87 Reexamine issues associated with lease accounting Issuance of concepts statements Evaluate standards in effect for sufficient time FASB/IASB project Project began April 2013 Preliminary Views November 2014 Public hearings Field test Exposure Draft January 2016 Final Standard June 2017 Definition of a Lease A contract that conveys control of the right to use another entity s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction 3

4 Scope Exceptions Leases of Intangible assets Biological assets Inventory Assets financed with conduit debt* Service concession arrangements Supply contracts *Unless lessor reports asset & conduit debt Foundational Principle Leases are financings 4

5 Lease Term *If reasonably certain that option will be exercised Noncancelable Period Periods covered by lessee or lessor s option to extend* Lease Term Periods covered by a lessee or lessor s option to terminate** **If reasonably certain that option will not be exercised Periods subject to fiscal funding clause*** ***Unless reasonably certain that clause will be exercised Periods for which both lessee & lessor have option to terminate or both have to agree to extend Lease Term Examples Renewal option 5-year lease with 2-year renewal option for lessee Lease of building for lowincome health clinic Reasonably certain will renew Lease term = 7 years Month-to-month 2-year initial term, then monthto-month Lessee or lessor could cancel at any time after initial term No enforceable obligation then Lease term = 2 years 5

6 Lessees Lease liability Intangible right to use asset Interest expense on liability Amortization expense of asset Recognition & Measurement Liability Initial measurement of a lease liability includes present value of Fixed payments to be made over lease term, less any lease incentives Variable payments based on an index or rate, using rate in effect at lease commencement Variable payments that are in-substance, fixed Residual value guarantees reasonably certain of being required Purchase options reasonably certain of being exercised Termination penalties if lease term reflects lessee exercising option to terminate lease or fiscal funding/cancellation clause Other payments reasonably certain of being paid 6

7 Recognition & Measurement Liability Does not include lease payments dependent on a lessee s performance or usage of an underlying asset Recognition & Measurement Lease liability payments should be discounted using rate lessor charges lessee, or lessee s incremental borrowing rate (rate cannot be readily determined) Amortize discount to interest expense Payments allocated between interest & lease liability 7

8 Recognition & Measurement Asset Recognize an intangible asset for right to use underlying asset Initial measurement of a lease asset includes Value of initial lease liability Any prepayments (amounts paid for lease prior to measuring lease liability) Initial direct costs if they are ancillary charges to place leased asset into use Lease incentives received reduce cost of lease assets Initial direct costs (debt issuance costs) should be expensed Recognition & Measurement Lease asset amortized using a systematic & rational basis over shorter of useful life of underlying asset or lease term If lease contains a purchase option reasonably certain of being exercised, amortize over the useful life of the underlying asset Classify amortization of lease asset as amortization expense 8

9 Remeasurement Remeasurement of a lease liability when certain changes occur Lease term Likelihood (reasonably certain to not reasonably certain or vice versa) of a purchase option being exercised Amounts expected to be payable under a residual value guarantee or when there is a change in likelihood (reasonably certain to not reasonably certain or vice versa) a payment will be required A change in the estimated amounts for payments included in the measurement of the lease liability Interest rate lessor charges lessee (if used as discount rate) Contingency upon which variable lease payments are based changes & payment should now be included (variable to fixed payments) Remeasurement Update of discount rate as part of remeasurement when Lease term is changed There is a change in likelihood (reasonably certain to not reasonably certain or vice versa) a purchase option will be exercised 9

10 Adjustment To Liability Adjustments to lease liability generally should adjust lease asset by same amount If adjustment is greater than carrying value of asset, difference is recognized in flows statement Right To Use Asset Intangible right-of-use asset in a lease is a capital asset Accounted for in accordance with existing authoritative guidance for capital assets Relationship between underlying asset & lease asset could mean indicators of impairment present (change in manner or duration of use of lease asset) A change in manner or duration of use of lease asset may indicate impairment of that asset When asset underlying a lease is damaged & requires restoration or replacement, time period during which underlying asset is not usable generally is relevant factor in assessing whether impairment test has been met An impaired lease asset first would be adjusted by any change in corresponding lease liability, with any remaining adjustment recognized as impairment loss 10

11 Lessee Disclosures Lessees required to disclose the following A general description of leasing arrangements Total amount of leased assets & related accumulated amortization, disclosed separately from owned assets Total variable lease payments actually incurred during reporting period (not already included in lease liability) Lease assets disaggregate by major classes of underlying assets Amount of other payments (residual guarantees, termination payments) not already included in lease liability A maturity analysis of future minimum lease payments that shows payments for each of first five years & five-year increments thereafter, with payments shown undiscounted & total interest summed for all years Lessee Disclosures Lessees required to disclose the following Lease commitments, other than short-term leases, for which lease term has not begun Components of a net impairment loss Other leasing transactions Sublease Sales-leaseback Lease-leaseback Related-party leases 11

12 Lessor Model Overview Financed giving up of the right to use an asset Lease receivable Deferred inflow of resources Lease revenue & interest revenue No derecognition of underlying asset Lessor Model Exceptions Short-term leases Contracts that transfer ownership Leasing out assets that are investments Certain regulated leases 12

13 Lessor Model Receivable Present value of future payments for lease term Fixed payments Variable payments based on index or rate Variable payments fixed in substance Residual value guarantees fixed in substance Lease incentives due to lessee Discount using rate lessor charges lessee Amortize discount to interest revenue Lessor Model Deferred Inflow Initial value Lease receivable Lease payments received that relate to future periods Subsequent measurement Recognition as an inflow (revenue) over term of lease Systematic & rational method 13

14 Lessor Model Underlying Asset Do not derecognize underlying asset Continue accounting for it as always Depreciation, impairment, etc. Except: lease requires it to be returned in same or enhanced condition So I have two assets: a receivable & the underlying asset? Yes. Cost-benefit decision by the GASB. Do you remove part of a building & then put it back when lease is over? Lessor Model Disclosures General description of leasing arrangements Total revenues (inc. interest) recognized in the period Revenues for payments not previously in receivable Terms of lessee cancellation options if payments secure debt of the lessor If principal operations are leasing, future payment schedule 14

15 Lessor Model Disclosures Regulated Leases General description of agreements Preferential or exclusive use provisions Total revenues (inc. interest) recognized in the period Future minimum payment schedule Revenues for payments not previously in schedule Terms of lessee cancellation options if payments secure debt of the lessor Certain Regulated Leases 15

16 Certain Regulated Leases Lessors that meet certain provision exempt from lessor recognition provisions Instead recognize revenue based on contractual payment provisions & provide specific disclosures (para 60) Certain Regulated Leases Exemption requires that laws, regulations or legal rulings establish ALL of the following 1. Lease rates do not exceed a reasonable amount, with reasonableness subject to external regulators 2. Lease rate are similar for similar lessees 3. Cannot deny potential lessees if facilities available (assuming compliance with use restrictions) 16

17 Airport Issues Impact For Airports Appears GASB expects all aviation agreements to meet regulated lease provisions based on current laws, regulations or legal rulings FAA Policy Statements & other rulings require aeronautical uses of airports to meet requirement of Statement 87 Concessionaire & non-aviation agreements are not expected to meet regulated lease provisions Airport Issues Airline Agreements GASB intended to provide exemption for airline use agreements Different from typical leases (financing of right to use underlying asset) Payments vary from period to period Cost-recovery nature Revenue-sharing provisions Appropriate to recognize lease revenue based on provision of the airline agreements 17

18 Airport Issues Other Leases Variety of other leasing agreements Concessions Rental car facilities FBO These expected to be subject to regular lease model Consideration of contract terms (cancellation clauses) Airport Issues Impact For Airports May be a large volume of leases to analyze & track (completeness) A portion of lease revenue currently presented as operating could be recognized as interest income (nonoperating), which could negatively impact rate covenant calculations Recognition of a potentially large receivable & deferred inflow of resources 18

19 Airport Issues Impact For Airports Lessor balance sheets/statements of net position would include both the leased asset & the lease receivable Potentially a significant increase in liabilities Interest expense vs. lease expense Operating vs. nonoperating expense classification Other Topics 19

20 Short-Term Leases Practicality exception for short-term leases A short-term lease is one that, at beginning of lease, has maximum possible term under contract, including any options to extend, of 12 months or less Maximum possible term for a cancellable lease defined as the noncancellable period, including any notice periods Leases that transfer ownership do not qualify for short-term lease exception, even if they meet other criteria Lessees not required to recognize assets or liabilities associated with right to use underlying asset for short-term leases Lease payments recognized as expenses/expenditures based on terms of contract Contracts With Multiple Components Generally, a government should account for the lease & non-lease components of a lease as separate contracts If a lease involves multiple underlying assets, lessees & lessors in certain cases should account for each underlying asset as a separate lease contract 20

21 Contracts With Multiple Components Lessees allocate consideration to multiple components Contract Combinations Contracts that are entered into at or near the same time with the same counterparty & that meet certain criteria should be considered part of the same lease contract & should be evaluated in accordance with the guidance for contracts with multiple components 21

22 Lease Incentives A payment made to, or on behalf of, lessee for which the lessee has a right of offset with its obligation to the lessor Equivalent to a rebate or discount Explicit guidance clarifying the accounting for lease incentives based on when incentive is received before or after lease inception Subleases Issues relating to subleases Accounted for as transactions separate from their original leases (two separate transactions) Disclosure of treatment of subleases Subleases would be noted as one of items to be included in general description of lease arrangements (if applicable) Lessor transactions related to subleases would be disclosed separately from original lessee transactions 22

23 Sale-Leaseback Transactions Sale-leaseback transaction should include a qualifying sale in order to be eligible for sale-leaseback accounting Sale & leaseback portions of a sale-leaseback transaction should be accounted for separately as a sale transaction & a lease transaction, except that any gain or loss on sale should be deferred & recognized over term of lease Lease-Leaseback Transactions Lease-leaseback transaction should be accounted for as a net transaction, with disclosure of gross amounts for each portion of transaction 23

24 Leases With Certain Counterparties Related-party leases should be recognized based on substance of transaction, when substance is significantly different from form Nature & extent of leasing transactions should be disclosed Leases With Certain Counterparties Current treatment for leases with blended component units do not report lease in financial reporting entity s financial statements is retained Current treatment for leases with discretely presented component units no elimination, but separate presentation of lease receivable & payable is retained 24

25 Effective Date & Transition Periods beginning after December 15, 2019 Retroactive Restate prior periods presented Cumulative effect to beginning net position/fund balance Facts & circumstances existing at implementation Prepare for Implementation Inventory lease contracts & potential lease contracts Capture key data & develop mechanism to track it Reconsider lease vs. buy decisions Check wording of covenants Consider renegotiating if lease liability might cause violation GASB Implementation Guide coming 25

26 Questions? Sign up to receive BKD Thoughtware at bkd.com/signup Follow us on CONTINUING PROFESSIONAL EDUCATION (CPE) CREDITS BKD, LLP is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: The information contained in these slides is presented by professionals for your information only & is not to be considered as legal advice. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor or legal counsel before acting on any matters covered. 26

27 CPE CREDIT CPE credit may be awarded upon verification of participant attendance For questions, concerns or comments regarding CPE credit, please the BKD Learning & Development Department at Thank You! Sign up to receive BKD Thoughtware at bkd.com/signup Follow us on 27

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

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

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

GASB 87 Leases. GASB 87 Scope and Effective Date

GASB 87 Leases. GASB 87 Scope and Effective Date GASB 87 Leases December 12, 2017 GASB 87 Scope and Effective Date Effective date reporting period beginning after December 15, 2019 How does this improve accounting and financial reporting? Establishes

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

Leases. January 25, 2016 Comments Due: May 31, Proposed Statement of the Governmental Accounting Standards Board

Leases. January 25, 2016 Comments Due: May 31, Proposed Statement of the Governmental Accounting Standards Board January 25, 2016 Comments Due: May 31, 2016 Proposed Statement of the Governmental Accounting Standards Board Leases This Exposure Draft of a proposed Statement of Governmental Accounting Standards is

More information

GASB Update. VGFOA Fall Conference October Leases and Fiduciary Activities. Paulina Haro

GASB Update. VGFOA Fall Conference October Leases and Fiduciary Activities. Paulina Haro VGFOA Fall Conference October 2017 GASB Update Leases and Fiduciary Activities Paulina Haro The views expressed in this presentation are those of Paulina Haro Official positions of the GASB are reached

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

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

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

A Whole New Lease on Life: Why You Need to Start Planning NOW! for GASB 87

A Whole New Lease on Life: Why You Need to Start Planning NOW! for GASB 87 2:00 3:15 May 8, 2018 Room: 223-226 112 th Annual Conference May 6-9, 2018 St. Louis, Missouri Moderator/Speakers: Brian W. Caputo, Ph.D., CPA, CPFO Vice President for Administrative Affairs & CFO, College

More information

GASB Statement No. 87, Leases

GASB Statement No. 87, Leases Florida GFOA Webinar, July 2018 GASB Statement No. 87, Leases Brian W. Caputo, Ph.D., C.P.A. Vice President for Administrative Affairs & CFO, College of DuPage and Board Member, Governmental Accounting

More information

GASB 87: Leases. Hosted By: Ben Lindekugel, Executive Director Association of Washington Public Hospital Districts

GASB 87: Leases. Hosted By: Ben Lindekugel, Executive Director Association of Washington Public Hospital Districts GASB 87: Leases Hosted By: Ben Lindekugel, Executive Director Association of Washington Public Hospital Districts November 6, 2018 Presented By Tom Dingus, CPA, Partner Dingus, Zarecor & Associates PLLC

More information

GASB 87. OVERVIEW: Supersedes GASB s 13 and 62 (paragraphs ).

GASB 87. OVERVIEW: Supersedes GASB s 13 and 62 (paragraphs ). Leases OVERVIEW: Supersedes GASB s 13 and 62 (paragraphs 211-271). Will require significant changes from its current practice, particularly in the accounting for operating leases Effective for reporting

More information

7/30/2018. Health Care. A CHC-Focused Plan for the New Lease Accounting Standard

7/30/2018. Health Care. A CHC-Focused Plan for the New Lease Accounting Standard Health Care A CHC-Focused Plan for the New Lease Accounting Standard July 31, 2018 1 TO RECEIVE CPE CREDIT Individuals Participate in entire webinar Answer polls when they are provided Groups Group leader

More information

Lease Accounting Exposure Draft. ACI-NA Webinar May 10, 2016

Lease Accounting Exposure Draft. ACI-NA Webinar May 10, 2016 Lease Accounting Exposure Draft ACI-NA Webinar May 10, 2016 Call Participants ACI-NA: Liying Gu Moderator: Max Underwood, DFW Intl Airport Accounting Firm: BKD, LLC Rick Wittgren Deborah Beams Airports:

More information

GASB 87 10/29/2017 OBJECTIVE OF GASB 87

GASB 87 10/29/2017 OBJECTIVE OF GASB 87 GASB 87 LEASES OBJECTIVE OF GASB 87 Establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. REQUIRMENTS Lessee

More information

Implementing GASB s Lease Guidance

Implementing GASB s Lease Guidance The effective date of the Governmental Accounting Standards Board s (GASB) new lease guidance is drawing nearer. Private sector companies also have recently adopted significantly revised lease guidance;

More information

OBJECTIVE OF GASB 87

OBJECTIVE OF GASB 87 LEASES GASB 87 OBJECTIVE OF GASB 87 Establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. 1 REQUIRMENTS

More information

What makes a lease a lease?

What makes a lease a lease? Leases What makes a lease a lease? 2 3 Lease? Customer enters into a contract with a ship owner to transport its cargo The contract specifies the cargo to be transported on the ship and the dates of pickup

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

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

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

GASB 87, Leases. Ali H. Hijazi, Senior Manager

GASB 87, Leases. Ali H. Hijazi, Senior Manager GASB 87, Leases Ali H. Hijazi, Senior Manager Agenda Timing Defining Our Terms Accounting and Disclosure Requirements Preparation Recommendations Examples 2 Timing Timing The requirements of this standard

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

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

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

Exposure Draft. Indian Accounting Standard (Ind AS) 116 Leases. (Last date for Comments: August 31, 2017)

Exposure Draft. Indian Accounting Standard (Ind AS) 116 Leases. (Last date for Comments: August 31, 2017) ED/Ind AS/2017/06 Exposure Draft Indian Accounting Standard (Ind AS) 116 Leases (Last date for Comments: August 31, 2017) Issued by Accounting Standards Board The Institute of Chartered Accountants of

More information

Leases: A Comprehensive Update on the Joint Project

Leases: A Comprehensive Update on the Joint Project The Dbriefs Financial Reporting series presents: Leases: A Comprehensive Update on the Joint Project Bob Uhl, Deloitte & Touche LLP Trevor Farber, Deloitte & Touche LLP James Barker, Deloitte & Touche

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

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

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

Understanding Costs and Benefits

Understanding Costs and Benefits January 2018 Understanding Costs and Benefits Leases Summary The Governmental Accounting Standards Board (GASB) issues new accounting and financial reporting standards only when the benefits of the standards

More information

GOVERNMENTAL ACCOUNTING CHANGES ON THE HORIZON: WHY TRIBES NEED TO BE PROACTIVE

GOVERNMENTAL ACCOUNTING CHANGES ON THE HORIZON: WHY TRIBES NEED TO BE PROACTIVE Tony Abeyta GOVERNMENTAL ACCOUNTING CHANGES ON THE HORIZON: WHY TRIBES NEED TO BE PROACTIVE Chris Tyhurst, CPA Chris Bitakis, CPA The information provided herein should not be construed as financial, investment,

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

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

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

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

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

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

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

FPP Committee Meeting Proposed COA Changes. June 8, 2018

FPP Committee Meeting Proposed COA Changes. June 8, 2018 FPP Committee Meeting Proposed COA Changes June 8, 2018 Agenda Visit various GASB Statements COA changes needed GASB #84 Fiduciary Activities Statement No. 84 Fiduciary Activities How many currently report

More information

The joint leases project change is coming

The joint leases project change is coming No. 2010-4 18 June 2010 Technical Line Technical guidance on standards and practice issues The joint leases project change is coming What you need to know The proposed changes to the accounting for leases

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

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

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

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

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

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

Accounting and Auditing Update. Staci L. Brogan, CPA, Shareholder Patricia R. Giudici, CPA, Senior Manager Schneider Downs & Co. Inc. Accounting and Auditing Update Staci L. Brogan, CPA, Shareholder Patricia R. Giudici, CPA, Senior Manager Schneider Downs & Co. Inc. Agenda Overview of the standard setting agenda Revenue recognition Lease

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

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

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

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

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

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

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

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

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

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

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

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

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

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 Lessor Accounting under ASC 842 EQUIPMENT LEASING AND FINANCE ASSOCIATION Presenters Rod Hurd Chief

More information

The new IFRS 16 Leases effective as of 1 January 2019

The new IFRS 16 Leases effective as of 1 January 2019 The new IFRS 16 Leases effective as of 1 January 2019 IFRS 16 was issued by IASB on 13 January 2016. The Standard is effective as of 1 January 2019. It has not yet been adopted by the EC. This is a Standard

More information

Leases. November 11, 2014 Comments Due: March 6, Preliminary Views. of the Governmental Accounting Standards Board. on major issues related to

Leases. November 11, 2014 Comments Due: March 6, Preliminary Views. of the Governmental Accounting Standards Board. on major issues related to November 11, 2014 Comments Due: March 6, 2015 Preliminary Views of the Governmental Accounting Standards Board on major issues related to Leases Project No. 3-24P LEASES Notice of Public Hearings and Request

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

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

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

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

HKFRS 16 Leases. Disclaimer. Date 21 April 2017 Time 19:00 21:00 Venue Boys' and Girls' Clubs Association

HKFRS 16 Leases. Disclaimer. Date 21 April 2017 Time 19:00 21:00 Venue Boys' and Girls' Clubs Association HKFRS 16 Leases Date 21 April 2017 Time 19:00 21:00 Venue Boys' and Girls' Clubs Association www.zhtraining.com Disclaimer The materials of this seminar are intended only to provide general information

More information

AASB 16: Experience the Fundamental Overhaul of Lease Accounting for Lessees

AASB 16: Experience the Fundamental Overhaul of Lease Accounting for Lessees AASB 16: Experience the Fundamental Overhaul of Lease Accounting for Lessees Introduction to Session This introductory session we will: Explore the Principles of AASB 16 Learn how to Identify a Lease Work

More information

Gearing up for change New IFRS on Leases

Gearing up for change New IFRS on Leases Gearing up for change New IFRS on Leases In a nutshell The changes Lessee accounting Effective date: 1 January 2019 Limited changes to scope of IAS 17 Enhanced guidance on identifying a lease Lessor accounting

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

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

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

IFRS 16 Leases supplement

IFRS 16 Leases supplement IFRS 16 Leases supplement Guide to annual financial statements IFRS December 2017 kpmg.com/ifrs Contents About this supplement 1 About IFRS 16 3 The Group s lease portfolio 6 Part I Modified retrospective

More information

[TO BE PUBLLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

[TO BE PUBLLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] [TO BE PUBLLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 30 th March, 2019 G.S.R. (E).

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

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

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

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

IFRS 16 : Lease accounting

IFRS 16 : Lease accounting IFRS 16 : Lease accounting Effective for accounting periods beginning on or after 1 January 2019 December 2017 IFRS 16: Lease accounting The IASB published the new IFRS 16 lease standard, in order to avoid

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

NEED TO KNOW. Leases A Project Update

NEED TO KNOW. Leases A Project Update NEED TO KNOW Leases A Project Update 2 LEASES - A PROJECT UPDATE TABLE OF CONTENTS Introduction 3 Existing guidance and the rationale for change 4 The IASB/FASB project to date 5 The main proposals 6 Definition

More information

LKAS 17 Sri Lanka Accounting Standard LKAS 17

LKAS 17 Sri Lanka Accounting Standard LKAS 17 Sri Lanka Accounting Standard LKAS 17 Leases CONTENTS SRI LANKA ACCOUNTING STANDARD LKAS 17 LEASES paragraphs OBJECTIVE 1 SCOPE 2 DEFINITIONS 4 CLASSIFICATION OF LEASES 7 LEASES IN THE FINANCIAL STATEMENTS

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

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

MONITORDAILY SPECIAL REPORT. Lease Accounting Project Update as of May 25, 2011 Prepared by Bill Bosco, Leasing 101

MONITORDAILY SPECIAL REPORT. Lease Accounting Project Update as of May 25, 2011 Prepared by Bill Bosco, Leasing 101 MONITORDAILY SPECIAL REPORT Lease Accounting Project Update as of May 25, 2011 Prepared by Bill Bosco, Leasing 101 The high volume of comment letters (780+) and numerous outreach meetings had common criticisms

More information

Preview of the New Exposure Draft of the Lease Accounting Project Key elements and commentary

Preview of the New Exposure Draft of the Lease Accounting Project Key elements and commentary Preview of the New Exposure Draft of the Lease Accounting Project Key elements and commentary Prepared by Bill Bosco, Leasing 101 www.leasing-101.com The Financial Accounting Standards Board (FASB) and

More information

Tracking IFRS Exposure draft on Leases

Tracking IFRS Exposure draft on Leases Issue 3 September 2010 Tracking IFRS Exposure draft on Leases 1. Introduction On 17 August 2010, the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB)

More information

IATA Industry Accounting Working Group Guidance IFRS 16, Leases

IATA Industry Accounting Working Group Guidance IFRS 16, Leases IATA Industry Accounting Working Group Guidance 1st Edition Issued February 2018 NOTICE DISCLAIMER. This document has been compiled by the IATA Industry Accounting Working Group (IAWG), which consists

More information

International Accounting Standard 17 Leases. Objective. Scope. Definitions IAS 17

International Accounting Standard 17 Leases. Objective. Scope. Definitions IAS 17 International Accounting Standard 17 Leases Objective 1 The objective of this Standard is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure to apply in relation

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

What Nonprofits Need to Know About the New Standards for Lease Accounting

What Nonprofits Need to Know About the New Standards for Lease Accounting The webcast will start at 1 p.m. Eastern Please note: Handout You can print or download the webcast handout at https://capincrouse.com/webcast-lease-accounting CPE CPE certificates will be emailed to you

More information

Accounting Standards for Enterprises No Leases No. 3 [2006] of the Ministry of Finance

Accounting Standards for Enterprises No Leases No. 3 [2006] of the Ministry of Finance Accounting Standards for Enterprises No. 21 - Leases No. 3 [2006] of the Ministry of Finance Chapter I General Provisions Article 1With a view to regulating the recognition and measurement of leases, as

More information

Grant Thornton October Leases. Navigating the guidance in ASC 842

Grant Thornton October Leases. Navigating the guidance in ASC 842 Grant Thornton October 2018 Leases Navigating the guidance in ASC 842 This publication was created for general information purposes, and does not constitute professional advice on facts and circumstances

More information

SSAP 14 STATEMENT OF STANDARD ACCOUNTING PRACTICE 14 LEASES

SSAP 14 STATEMENT OF STANDARD ACCOUNTING PRACTICE 14 LEASES SSAP 14 STATEMENT OF STANDARD ACCOUNTING PRACTICE 14 LEASES (Issued October 1987; revised February 2000) The standards, which have been set in bold italic type, should be read in the context of the background

More information

Proposed Accounting Standards Update (Revised)

Proposed Accounting Standards Update (Revised) Proposed Accounting Standards Update (Revised) Issued: May 16, 2013 Comments Due: September 13, 2013 Leases (Topic 842) a revision of the 2010 proposed FASB Accounting Standards Update, Leases (Topic 840)

More information

Leases Refashioned. The Bottom Line. Retail & Distribution Spotlight January In This Issue

Leases Refashioned. The Bottom Line. Retail & Distribution Spotlight January In This Issue Retail & Distribution Spotlight January 2017 In This Issue Background Key Issues Challenges Thinking Ahead Contacts Leases Refashioned The Bottom Line On February 25, 2016, the FASB issued its new leases

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