Wiley GAAP 2020

57 ASC 842 LEASES

• Perspective and Issues
  • Technical Alert ASU 2016-02—Putting It on the Balance Sheet
    • Guidance.
    • Lessees.
    • Lessors.
    • Effective Dates.
    • Transition.
    • Practical Expedients.
  • ASU 2018-01
  • ASU 2018-10
  • ASU 2018-11
  • ASU 2018-20
  • ASU 2019-01
    • Subtopics.
    • Scope.
    • Determining Whether a Lease Is Present in the Contract.
• Overview
• Definitions of Terms
• Concepts, Rules, and Examples
  • Lease Classification
  • Reassessment
  • Modifications
  • Subsequent Measurement
  • Significant Changes from Current U.S. GAAP
    • Definition of a Lease.
    • Lease Accounting.
  • Presentation—Using the Display Approach
  • Disclosures Under ASC 842
  • Implementation Considerations

PERSPECTIVE AND ISSUES

Technical Alert ASU 2016-02—Putting It on the Balance Sheet

Note: See the Technical Alert in the chapter on ASC 250 for information on SEC pre-adoption disclosures for the new standard on leases, ASU 2016-02.

ASU 2016-02, Leases, created ASC 842 and is discussed throughout this chapter. Following are key points of the new guidance.

In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). The existing standard (ASC 840) has been criticized because its bright-line classification criteria enabled entities to structure leases in such a way as to avoid putting them on the balance sheet. The new standard (ASC 842) aims to improve and simplify the financial reporting for leases and create a model that provides for faithful representation of leasing transactions for both lessees and lessors. ...