NEW LEASE STANDARDS RELEASED
Business Associates and Friends,
At Berman Hopkins Wright & LaHam, we strive to ensure that you are informed about important matters that may significantly impact your operations, cash flows and financial reporting.
As you may be aware, the Financial Accounting Standards Board (FASB) has been working for a number of years on changes to the standards for reporting leases and those changes are finally here!
The FASB released Accounting Standards Update (ASU) 2016-02, “Leases,” on February 25, 2016. The update provides new accounting guidance related to accounting for leases, and will have a significant impact on the reporting of operating leases. This new standard will be effective for non-public companies for fiscal years beginning after December 15, 2019. Early application is permitted, and the update will require a modified retrospective approach.
Although there is some time before this standard is effective, we recommend that you start learning about these changes now! As new leases are created between now and the effective date, it may be beneficial to understand how these leases will be accounted for after the change. The Journal of Accountancy has an article on the first steps to implementation of these new standards; click the link below to read more:
Or, if you would like to review the update in its entirety, you can visit www.FASB.org and download the complete update.
Berman Hopkins maintains a professional library that includes various resources about this new standard that will benefit your entity. Our professionals have access to these resources, are informed about the standard, and are monitoring implementation issues and guidance particular to your individual circumstances as they evolve and as information is disseminated. Finally, we are available to assist you and will continue to share information as appropriate.
We look forward to talking to you about how these standards may affect your financial reporting.
Your Berman Hopkins Team