The new FASB standard is having a drastic effect on lease accounting. Though what you pay isn’t changing, how you pay and categorize your leases is seeing a major shift. Under the FASB standard, lessees must use their balance sheet to recognize operating lease assets and liabilities, not just capital leases, which puts a new strain on CFOs and their teams to adjust.
How should companies prepare for these new standards, considering they went into effect for public companies in December, and for private companies will go into effect a year after that? On this episode of Weaver: Beyond the Numbers, get insight from our own Jody Allred, Partner for Risk Advisory Services, and Colby Horn, Director of Real Estate and Hospitality accounting. Allred and Horn walk through the exciting changes and the most common pitfalls to avoid under the FASB lease accounting standards, detailing which industries will be affected the most, how the standards have an impact beyond financial reporting, and more simply, defining what will now be considered a lease.