How do you account for that? A look at the new accounting rules for leases

Description

Abstract: Earlier this year, the FASB released its much-anticipated update on the proper treatment of leases under U.S. GAAP. The revised standard — known as Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) — will apply to all organizations that lease assets such as real estate, vehicles, and construction and manufacturing equipment. This article explains what both lessees and lessors should know about the new rules. A sidebar looks at how the revised standard could affect real estate lease negotiations.