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Guide

Lease Accounting Standards

New lease accounting rules (FASB Topic 842) is now required for all public companies beginning in 2019. The primary goal of the new standard is to improve transparency for committed long-term leases by requiring lessees to show most leases on their balance sheets. The existing lease accounting rules (“Topic 840”) do not require assets and liabilities for operating leases to be shown on lessee balance sheets. The new accounting will be a big change for lessees, particularly those with large, long-term leases of assets like real estate, aircraft and specialized equipment.

The Financial Accounting Standards Board (“the Board”) considered feedback received on three separate papers addressing lease accounting and throughout many years of deliberations. The Board introduced several simplifications to make the new lease accounting requirements similar to those in previous leases’ guidance and to reduce the cost and complexity of transition to the new guidance. One such simplification was allowing lessees to elect not to recognize lease assets and lease liabilities for leases with a term of 12 months or less.

We followed the Board’s process leading up to issuance of the new lease accounting standard (“Topic 842”) and share our views of what the standard means for the lessees of our unique leases of cars and trucks.

This guide will dive deeper and provide some insight into the following categories:

  • Unique Vehicle Leases
  • New Lease Accounting & Lease Term
  • Reasonably Certain and Economic Factors
  • Reasonably Certain and Other Considerations

To learn more, download New Lease Accounting Rules guide today.

Access the Guide

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