Thu, Dec 6, 2018
ASC 842 – Leases (Accounting Standards Update No. 2016-02), issued by the Financial Accounting Standards Board (FASB) in February 2016, will take effect on January 1, 2019 for calendar-year public companies. For private entities, it is effective a year later.
While lessor accounting remains largely unchanged, lessees will be significantly affected. Most operating leases will now be capitalized on the balance sheet, leading to greater transparency of a company’s leasing activities. Lessees will now be required to recognize assets and liabilities related to operating leases with lease terms of more than 12 months.
For entities with numerous operating leases, the impact is significant, especially in the retail, energy, telecommunications, transportation and airline industries.
Duff & Phelps can assist your company in implementing ASC 842, including the following:
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As a global leader in real estate advisory and cost of capital, Duff & Phelps is uniquely positioned to help clients with these new requirements. Please get in touch with our valuation experts and consultants to discuss your specific company requirements.
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