Lease accounting for contractors – New rules on the way

Description

Abstract: It’s been 13 years since the Financial Accounting Standards Board started overhauling its lease standard. Now the new accounting rules are set to take effect in 2020 for companies with a calendar year end. This article explains what’s changing and how the changes may affect a construction company’s financial statements. A sidebar looks at some complexities of how the rules may or may not affect short-term leases.