skip to main content
X

FASB Takes Step Toward Clarifying Lease Accounting

FASB Takes Step Toward Clarifying Lease Accounting

The Financial Accounting Standards Board (FASB) is seeking to update its latest lease accounting standards (ASC 842) after several questions arose from private companies and not-for-profits who adopted the standard this year. The standards cover the treatment of real estate and other lease agreements between common entities, but lease arrangements are not always documented for private companies.

Partner Patrick Farrelly noted the adoption of the standards by private companies are what sparked the update, especially as they approach their end of the year accounting. "A lot of the noise is... most private companies don’t really do quarterly reporting and they really do their financial statements at the end of the year so basically they’re coming to the end of the year and realizing they need to implement this standard and now that they are you’re seeing some of these issues arise," Farrelly said.

Farrelly noted there are always some difficulties adopting new standards for the first time and this step by FASB to address questions as they arise are part of the implementation process. "You’re going to keep finding nuances,” he said. “It’s never easy to adopt any new accounting standard."

 

Read the full article published by CFO Dive.

Have a Question?

Fill out the form to speak with Patrick Farrelly

Hide Firm Disclaimer

©2024 UHY LLP. ALL RIGHTS RESERVED.

UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc., and its subsidiary entities. UHY Advisors, Inc.’s subsidiaries, including UHY Consulting, Inc., provide tax and business consulting services through wholly owned subsidiary entities that operate under the name of “UHY Advisors” and “UHY Consulting”. UHY Advisors, Inc., and its subsidiary entities are not licensed CPA firms. UHY LLP, UHY Advisors, Inc. and UHY Consulting are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. “UHY” is the brand name for the UHY international network. Any services described herein are provided by UHY LLP, UHY Advisors and/or UHY Consulting (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.

On this website, (i) the term "our firm", "we" and terms of similar import, denote the alternative practice structure conducted by UHY LLP and UHY Advisors, Inc. and its subsidiary entities, and (ii) the term "UHYI" denotes the UHY international network, in each case as more fully described in the preceding paragraph.