The FASB’s lease accounting standard change, ASU 2016-02, Leases (Topic 842), presents dramatic changes to the balance sheets of lessees. Among many of the changes, lessor accounting is updated to align with certain changes in the lessee model and the new revenue recognition standard.
Read executive level insights into the new lease accounting rules through our In the loop series, and gain a technical perspective into the leasing standard’s requirements with our In depth publication, which includes industry-focused supplements. A comprehensive accounting and reporting guide on lease accounting to help you with your company’s implementation is also available.
In this podcast, PwC’s Jim Gazley, Ashima Jain and Shannon Detling continue their discussion of the new leases standard helping listeners work through their implementation plans and answer common questions. Serving as the third installment in our leasing podcast series, this episode covers the new FASB proposals related to transition, as well as accounting for impairments and subleases.
Listen to our other podcasts in this series:
Episode 31: Leasing - remeasurement, modifications and terminations
Episode 28: New Lease standard - Day one issues
Historically, equipment leases have lacked centralized processes and controls with most companies using manual tracking methods, resulting in limited visibility across the lease portfolio. The new leasing standards pose a particularly difficult challenge for equipment leases, which are often smaller in value but much more numerous and complex than property leases.
Compliance with the new standards will be more challenging without a complete understanding of an organization’s equipment-leasing portfolio. A robust equipment lease management solution not only helps companies comply with the new standards, but can also provide increased transparency and efficiencies across the organization.
These industry-specific supplements complement PwC’s In depth overview of the new lease accounting standard (ASC 842). They provide examples and further insights into ways entities within the industry are likely to be affected.