San Diego, November 21, 2017 – The report, Practical considerations for lease accounting, by Steve Austin, managing partner of Swenson Advisors, LLP, was published today. Also contributing to this report were Marion Adams, CPA, audit director, Swenson Advisors, LLP; Simon Terry-Lloyd, managing principal, Cresa San Diego; and Don Mitchell, managing principal, Cresa San Diego.
On the heels of a transformative and challenging revenue recognition standard, FASB’s new lease accounting standard presents a potential tsunami of changes to the financial statements of public and private companies.
In February 2016, FASB issued new lease accounting guidance in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). This new guidance was initiated as a joint project with the International Accounting Standards Board to simplify lease accounting and improve the quality and comparability of financial information for users. The IASB also issued guidance in IFRS 16 during January 2016.