Glass Buildings

Lease
Accounting

  • For many business entities, full understanding the new lease accounting standards (ASC 842,  IFRS 16, and GASB 87) has been an immediate source of frustration.

 

  • We’re here to help provide clarity to this process.  Start now before time runs out. The deadline for Lease Compliance is December 31, 2021.

FASB Guidance requires the following Lease Accounting classifications to be identified for Financial Reporting:

  • The Lessees to classify leases as either Finance or Operating lease based on executed and approved lease agreements.

  • The Lessor to classify leases as Direct Finance, Operating Lease, or Sales-Type based on the executed and approved lease agreements.

  • All Private Business entities are required to be FASB ASC 842 compliant by December 15, 2021 (Fiscal Year), and December 15, 2022 (Interim Period within).