Entities Find Some Relief in FASB’s Revised Lease Accounting Standard with “Targeted Improvements”
August 7, 2018
On July 30, 2018, the Financial Accounting Standards Board issued revisions to Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). The revisions address concerns that the original ASU creates hardship and ultimately expense for:
ASU No. 2018-11, Leases (Topic 842): Targeted Improvements aims to alleviate these concerns with the following two options:
In the FASB news release issued July 30, FASB Chairman Russell G. Golden said “The targeted improvements in the ASU address areas our stakeholders identified as sources of unnecessary cost or complexity in the leases standard. They represent the FASB’s commitment to proactively address implementation issues raised by our stakeholders to ensure a successful transition to the new standard without compromising the quality of information provided to investors.”
Smith & Howard is working with our clients who are potentially impacted by this ASU to ensure these optional provisions are addressed. If you have any questions about the implementation of this ASU, please contact Karl Briem at 404-874-6244 or simply fill out the contact form below.
* Non-lease components include goods and services provided by the lessor to the lessee that are separate from the right to use the leased asset. Examples include maintenance on lease equipment or security, among many others.
If you have any questions and would like to connect with a team member please call 404-874-6244 or contact an advisor below.CONTACT AN ADVISOR
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