Organizations use leasing for activities ranging from real estate to tangible assets. Leasing activities have an impact on the lessee's financial statements. Historically, however, lessees have not been required to recognize all lease assets and liabilities within their balance sheets. To increase visibility of leasing-related liabilities, the Financial Accounting Standards Board (FASB) issued the Accounting Standards Update 2016-02, Leases (Topic 842). The new standard brings significant changes to the lessee accounting model and updates to the lessor accounting model and is expected to have a wide-ranging effect on leasing activities.
MHM's professionals have taken a deep dive into the standard to help you work through the changes. We have put together webinars and the Understanding the Leasing Standard serial to lay out how the new leasing standard affects your operations and what you can do to prepare for implementation. Each part of the serial unpacks a portion of the guidance, providing illustrative examples of the types of activities that may be affected by the changes. The step-by-step approach is designed to make adopting the new standard easier.
We will continue to provide updates about the leasing standard as they become available. You are also welcome to contact us to learn more about how you can prepare for the leasing changes.