The final FASB (GAAP) Lease Accounting Standard was released today. It has been a long time (2006) since the IASB and FASB (IFRS) endeavored to increase transparency and consistency in accounting standards. Ultimately the two bodies did not agree on everything and there are still two standards, but they are much more similar than before.
Additionally, there is still quite some time before implementation is required. The standard will take effect for public companies for fiscal years beginning after December 15, 2018. For all others it will take effect for fiscal years beginning after Dec. 15, 2019. Early application will be permitted for all organizations.
You can find a more in depth article on the subject here or go directly to the FASB Update site to read the changes in detail.
For those who have not followed this saga over the last 10 years it is important to note that these changes will affect how companies structure leases and make decisions on owning vs. leasing real estate and equipment due to effects these standards will have on financial statements.
After we read the new standard in depth we will update this blog.