International Perspectives
New Lease Accounting Standards
International Perspectives
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Understanding the New Standards

New lease accounting standards contain dramatic changes that may affect the future of your organization’s balance sheet. The ASU No. 2016-02, “Leases (Topic 842)” and IASB-issued IFRS 16, “Leases” deadlines are quickly approaching, and any entity that enters into a lease will need to comp

More transparency – stakeholders will gain a clearer view into an organization’s leasing activities and their effects on the financial statements

Bigger balances – lessees will be required to recognize most leases “on balance sheet”

Dual effect – changes will affect not only lease accounting policies but also the systems used to manage them

Limited resources – companies may experience resource constraints as they manage implementation while still supporting their regular accounting processes

Ongoing compliance – processes and controls that govern lease acquisition and modification will need to be addressed

Tax implications – accounting changes could affect the organization’s income tax reporting