Serving Up the New Lease Guidance

Simon J. Little, CPA; Lindsay R. Sellers, CPA; and William C. Watts
A new lease accounting standard, Accounting Standards Update No. 2016-02, “Leases (Topic 842),” issued by the Financial Accounting Standards Board (FASB) in 2016, is effective in 2019 for public companies, not-for-profit entities that have issued securities that are traded on an exchange, and employee benefit plans filed with the Securities and Exchange Commission. All other entities must adopt in 2020. The new standard will affect any entity that enters into a lease. This article addresses key considerations for restaurants and retail businesses with regard to adopting the new leasing standard.
Restaurant and retail considerations for the new lease accounting standard