United States

Leases: Bring on the balance sheet



In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02, Leases, which includes comprehensive new guidance on the accounting for leases by both lessees and lessors. While the new guidance is not effective for a few years, certain things should be focused on now. In our summary, Leases: Bring on the balance sheet, we concisely explain:

  • Why you need to know about the new guidance (which includes an illustrative balance sheet for a lessee before and after giving effect to the new guidance)
  • When the new guidance must be first applied
  • What questions management should be considering now

Additional information about the new guidance is provided in our high-level white paper, Leases: Overview of the new guidance. More detailed information about a lesseeā€™s application of the new guidance is provided in our comprehensive white paper, Leases: New accounting requirements for lessees.