New Lease Accounting Rules

General Business

January 04, 2016
by Dan Szidon, CPA

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Dan Szidon Dan Szidon, CPA
Audit and Accounting Practice Leader

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Recently, the Financial Accounting Standards Board (FASB) voted to begin the process of issuing new lease accounting rules that, starting in 2020 for calendar year-end private companies, will require all long-term leases to be capitalized. Gone are the old FAS 13 rules that required capitalization of only certain "capital" leases. Under these new rules, all leases will be treated as capital leases with a right-of-use (ROU) asset being recorded and amortized and a corresponding discounted lease obligation being recorded as well.

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