Update 12-1 Accounting and Reporting: Leases
FASB Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), issued in February 2016, is effective for fiscal years of a public business entity, a not-for-profit entity that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market, and an employee benefit plan that files financial statements with the SEC beginning after December 15, 2018, including interim periods within those fiscal years.
For all other entities, FASB ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2019.
Early application is permitted for all entities.
FASB ASU No. 2016-02 supersedes the lease requirements in FASB Accounting Standards Codification (ASC) 840, Leases, and creates FASB ASC 842, Leases, to establish the principles that lessees and lessors should apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. FASB ASC 842 affects any entity that enters into a lease (as that term is defined in FASB ASU No. 2016-02), with some specified scope exceptions.
This edition of the guide has not been updated to reflect changes ...
