ASU 2016-02 Leases (Topic 842)

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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.

See also