ASU 2016-02 Leases (Topic 842)
From ACT Wiki
Lease accounting - US.
Changes to lease accounting in the US
- "In addition to the changes that IFRS 16 brings, treasurers need to be aware of the FASB's new accounting standard ASU 2016-02 Leases (Topic 842).
- Although the [US and international standard setting] boards were aiming to fully converge, their final standards differ in some key areas.
- To illustrate, while both international and US accounting standards will result in all leases being accounted for on balance sheet, the FASB decided to have a dual classification model for leases: finance leases and operating leases.
- Lease classification affects measurement of the ROU asset, lease expense and income statement presentation."
- The Treasurer magazine, September/October 2017, p40 - Paul Lippitt and Armaghan Haq.