Lease Accounting Rules

In February of 2016, the Financial Accounting Standards Board (FASB) released new standards to help businesses account for their leases. These standards, which were unveiled in Accounting Standards Update No. 2016-02, Leases, Topic 842 (ASU 2016-02), should be followed by any company that adheres to Generally Accepted Accounting Principles (GAAP). Interestingly, these new standards almost exclusively affect lessees; lessors have very little to worry about. The implementation deadline for these new standards is drawing near.