New lease accounting standards arrive – How this long-awaited guidance might affect your dealership
Abstract: The FASB has finally issued new guidance for lease accounting. Accounting Standards Update (ASU) No. 2016-02 will require dealerships that lease real estate, vehicles, equipment and other assets for more than one year to report lease obligations as fixed-asset liabilities on their balance sheets. This article discusses what will be different under the new standard and how these changes could affect auto dealerships.