In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). This ASU significantly changes how a lessee should account for its lease arrangements by placing both the right to use the leased asset and the obligation to make future lease payments on the balance sheet for almost all leases.
Topic 842 can have a significant impact on companies, especially companies that enter into numerous leases. If you have not started to analyze the impact of the new standard, the time to act is now. We hope that this publication provides you with a convenient summary of the objective of Topic 842, key considerations, and the related impact the guidance will have on lessees and lessors. We look forward to assisting you through the Topic 842 implementation journey.