Stay Informed
iLeasePro Newsletter

Expert Knowledge to Your Inbox - SignUp Now!

Effective Date of the Lease Accounting Standard


In a pivotal decision made during its meeting on November 11, 2015, the Financial Accounting Standards Board (FASB) took a significant step towards revamping lease accounting practices. The Board, during this meeting, gave its in-principle approval for proposed changes to lease accounting standards, signaling a shift in how organizations will account for leases in the future. While the final leases standard wasn't published at that time, the anticipation was that it would be released in the first quarter of 2016.

One of the notable takeaways from this meeting was the determination of effective dates for the new standard. For public business entities, the FASB decided that the standard would be effective for fiscal years beginning after December 31, 2018, which essentially translates to January 1, 2019. For nonpublic business entities, the effective date was set for fiscal years beginning after December 15, 2019, or January 1, 2020.

These extended effective dates may not come as a surprise, given the complexity of the new lease accounting standards and the Board's recent experience in deferring the effective date of the equally intricate revenue recognition standard. The intention behind these extended timelines was to provide organizations with ample lead time to prepare for and adapt to the impending changes.

While it may seem like these effective dates are far in the future, it's crucial for all companies affected by the impending leases standard to begin preparations in 2016. It's important to note that many leases executed in 2016 will be grandfathered into the new standard, emphasizing the need for early readiness.

In conclusion, the FASB's decision marked a significant shift in lease accounting practices, with updated standards expected to reshape how companies handle their lease agreements. To stay informed and prepared for this transition, companies can refer to resources like [insert URL] for additional information. As the effective dates draw nearer, proactive measures will be essential for a smooth transition to the new lease accounting standards.




Related: iLeasePro Free Trial, iLeaseXpress, iLeaseXpress Unlimited, ASC 842 Financial Reporting, ASC 842 Balance Sheet Reporting, ASC 842 Income Statement Reporting, ASC 842 Cash Flow Reporting, ASC 842 Statement of Shareholder Equity, ASC 842 Disclosure Notes, ASC 842 Management Discussion, ASC 842 Comprehensive Income, ASC 842 Glossary of Terms, ASC 842 Journal Entries, ASC 842 Software, When Is the ASC 842 Compliance Date, FASB Lease Accounting Software, Understanding the New FASB ASC 842 Lease Accounting Standard, How Does a Lease Balance Sheet Change After the New Standard?, Tracking Lease Details After ASC 842, Deferred Rent Explained Under the ASC 842, Guide to Lease Classification, Overview of Relevant Borrowing Rate, ASC 842 Footnote Disclosure, Lease Accounting, What Does Lease Accounting Software Do?, Key Features of A Lease Accounting Software, How to Never Miss Important Lease Dates, Scaling Your Lease Accounting Software to Your Business Needs, How to Select the Right Lease Solution, How to Set Up Lease Accounting Software, What is the Best Lease Accounting Software?, Overview of the Types of Leases, Equipment Lease Software, How the Right Lease Management Software Makes Equipment Leases Easier, Lease Tracking Software, How The Right Software Can Help You Manage Lease Data, Five Benefits of a SaaS Lease Management Solution, A Centralized Lease Portfolio Making Asset Management Easier, Lease Analysis 101, Lease Analysis: The Financial Metrics, Lease Abstraction, The Importance of Lease Abstraction for Lessees, The Lease Data an Abstract Should Include, What Software Do I Need for Lease Abstracting?, Navigating The ASC 842 Accounting Audit, Ultimate Lease Accounting Audit Checklist, Essential Guide To Engaging Auditors, Leveraging AI for Enhanced Year-End Audits Transitioning to the ASC 842 Standard Lease Document Management ASC 842 Short-Term Leases Practical Expedients Lease Modifications & Remeasurements Lease Variable Payments Embedded Leases Monitoring Critical Lease Dates Transportation - Navigate the ASC 842 The Impact of the ASC 842 on Regulatory Policies in Lease Management & Lease Accounting Integrating Lease Accounting into Your Month-End Closing Process The Modified Retrospective Approach in ASC 842 Determining the Incremental Borrowing Rate