United States

Audit committee tool: Preparing for the leases accounting standard

FINANCIAL REPORTING INSIGHTS  | 

On April 4, the Center for Audit Quality issued Preparing for the Leases Accounting Standard: A Tool for Audit Committees, which is designed to help audit committees in their oversight responsibilities related to the implementation of Financial Accounting Standards Board Accounting Standards Update 2016-02, Leases (Topic 842). The tool includes an overview of the standard and questions for audit committees to ask management and the auditor related to a company’s implementation efforts.

For a public business entity, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. RSM US LLP’s Lease Accounting Resource Center provides information about the new guidance.