As lease accounting becomes more complex and detailed for private companies and nonprofit organizations, business variations will inevitably be impacted by these standards.
Beginning in 2022, financial reporting standards now require businesses to capitalize on certain leasing activities within the company’s financial statements. According to the Financial Accounting Standards Board’s (FASB) Leases amendment (Topic 482) to the Accounting Standards Codification (ASC), the changes include eliminating most off-balance sheet reporting and expanding disclosure requirements.
PBO Advisory Group’s Mike Ford is a member of Forbes Finance Council, a group of senior-level finance executives who share their expert insight on issues within the financial services industry. Featured on Forbes.com, his most recently published article identifies the types of leases included in ASC 842, breaks down how to identify lease components and provides suggestions on how to navigate these lease accounting requirements.
Read Mike’s full article in Forbes here.