Mar 18, 2016
From the Financial Reporting Network
In February, the FASB issued its final lease accounting standard, which requires lessees to account for most leases on-balance sheet – a significant change from current U.S. GAAP. While the standard is not effective until 2019 for U.S. public companies with a calendar year-end, all companies may adopt the new leases standard immediately. This allows companies to adopt the new lease accounting standard before they adopt the new revenue standard.
The FASB expects to issue three additional standards about revenue within the next few months. These new standards are expected to be the last amendments to the new revenue recognition model before it becomes effective January 1, 2018, for U.S. public companies with a calendar year-end.
Meanwhile, public companies also are considering the implications of new standards that become effective in the first quarter of 2016, including new guidance about consolidation, presentation of debt issuance costs, and accounting for cloud computing arrangements.
Our Quarterly Outlook summarizes these and other accounting and financial reporting developments potentially affecting you in the current period or near term.