As most are aware by now, the Financial Accounting Standards Board issued ASC 606, Revenue from Contracts with Customers, in May 2014. In August 2015, implementation of the new standard was deferred one year. Generally, what that means is that public companies will have to begin to apply the new standard beginning with the calendar year 2018. Private companies have the election of deferring application until calendar year 2019. While this timing may sound far away to some, most companies should begin the analysis and implementation process now.
After years of debate and several iterations of exposure drafts, the Financial Accounting Standards Board (FASB) finally issued ASU No. 2016-02 in February 2016. This ASU established a new section within the codification as ASC 842 which, when effective, will supersede the previous lease guidance within ASC 840.
Read More “New Standard Alert! Answers to Five Questions on the New Lease Accounting Standard“