After years of debate, the new Leases standard was issued in 2016. It will be effective for public companies for 2019 calendar year ends and private entities the following year. While it started out as a highly anticipated convergence project with the IASB, ASU 2016-02 did not result in convergence between the standard-setting boards. In this session, we will examine the impact of implementing the new standard on the balance sheet, income statement, and cash flow statement. We will discuss both the impact to lessees as well as lessors. This course will explore the practical realities of implementation while identifying topics that entities may need to consider as they implement the standard.
1) Define a lease under ASU 2016-02
2) Classify a lease as operating or finance under ASU 2016-02