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. In 2021, nonpublic companies that report according to U.S. Generally Accepted Accounting Principles (GAAP) will be required to recognize [...]
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 [...]
Plants require fuel for growth, and a business is no different. Companies grow by synthesizing assets — people, equipment, and property — to deliver goods and services. It is typically easy to tell by looking at a plant if it is getting the right nutrition. An important gauge of a business’ health is the balance [...]
