On July 17th, 2019, the FASB voted to give privately held companies until 2021 to follow the new lease standard, rather than having to implement it next year. Private companies can all let out a sigh of relief. The reasoning behind this decision comes down to the fact that changing from the old standard to …
Update: The guidance below will be superseded upon the new lease accounting standard becoming effective for most private companies in 2020. For further information on the upcoming changes to lease accounting, see our article on preparing for the new lease standard. Many leases include incentives offered in the form of free or reduced rent, or …
Leasing equipment continues to be an attractive option for many companies compared to buying equipment outright. After going through the decision process of leasing new equipment, do you know how to account for it? The first question you should ask is “What type of lease is it?” Is it a capital lease or an operating lease? There are …