Heavy Lifting Begins on Lease Accounting Changes
Those that have started the process are quickly realizing that they face some tough challenges ahead.
May 31, 2017 | by Beth Mattson-Teig | National Real Estate Investor
Companies are finally rolling up their sleeves and starting to prep for new lease accounting rules. Those that have started the process are quickly realizing that they face some tough challenges ahead, and for some, it may be a scramble to meet the approaching deadline.
Some industry experts are already questioning whether there is a general lack of preparedness for the new FASB and IASB lease reporting rules that are looming. U.S. public companies will need to be in compliance for annual financial statements that are released after December 15, 2019.
However, they would need to present comparative periods for two years trailing—effectively year-end 2018 and year-end 2017. Private companies have a one-year grace period and do not have to present financial statements until the end of 2020.
