With the COVID-19 pandemic bringing unexpected challenges over the course of the last few months, FASB has officially issued Accounting Standards Update (ASU) 2020-05 providing privately-held entities and private nonprofit organizations with a one-year deferral of the ASC 606, Revenue from Contracts with Customers, effective dates, and ASC 842, Leases. The newly passed ASU 2020-05 will postpone [...]
With the influx of new accounting standards over the past couple of years, the burdens added to smaller accounting departments seem to be continuously mounting. Add in the COVID-19 pandemic, and now accounting departments and business owners are burdened with how to keep businesses afloat when collections take longer to come in, vendors requesting payment [...]
A huge sigh of relief could be heard when the Financial Accounting Standards Board (FASB) voted to approve a one-year deferral of the effective date of the new lease accounting standard for nonpublic companies. The one-year deferral comes at a time when most private companies and nonprofits are still working to comply with implementation of [...]
When the new lease accounting standard was released a few years ago, business leaders braced themselves to see their financial statements change. Such a drastic shift in accounting precedent required them to overhaul their policies and procedures surrounding leases. But savvy business leaders are also asking: “How will the standard affect our tax situation?” It [...]
Brick-and-mortar stores remain a vital component of multichannel sales strategies, despite the steady march of e-commerce. And for many retailers, leasing that real estate (rather than buying it outright) has been the most economically expedient option. Thanks to the new lease accounting standard, nonpublic companies that report according to U.S. Generally Accepted Accounting Principles (GAAP) [...]
For years, the new lease accounting standard has been a dark cloud on the horizon for every company that follows U.S. Generally Accepted Accounting Principles. But keep in mind, there is a silver lining. When companies look beyond compliance and take a strategic approach to managing their lease portfolio, they can reap operational benefits that [...]
Ever since the Financial Accounting Standards Board (FASB) announced new lease accounting standards in 2016, businesses have worked to understand their responsibilities under the revised rules. The new rules apply to all companies. Nonpublic companies must comply starting with financial reports issued on or after December 15, 2021. While this deadline might feel like it’s [...]
