Understanding the new lease accounting standard

Description

Abstract: Recently, the FASB issued its long-awaited lease accounting standard. Accounting Standards Update No. 2016-02, Leases (Topic 842), will have a big impact on the financial statements of companies that lease real property, equipment, vehicles and other fixed assets. This article details four things public companies need to know in preparation for the new standard. A sidebar looks at whether leasing arrangements require two sets of books.