In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02 – Leases (Topic 842) which provided a new model for lease accounting aimed to improve transparency and comparability across entities. Although the ASU was issued in 2016, the FASB provided a long implementation period. For entities that are not considered public business entities (PBEs), the standard becomes effective for annual reporting periods beginning after December 15, 2019, which means January 1, 2020 for calendar year-ends.
This document outlines all the relevant information you need to document for each existing lease starting with the date of the adoption and going forward into 2020 and beyond.
Senior Audit Manager
I joined Hawkins Ash CPAs in 2008 and serve as the director of audit and accounting. As a senior manager, I provide audit services to municipalities, employee benefit plans, school districts, and commercial enterprises.
