The US Financial Accounting Standards Board (FASB) has confirmed that the new Leases Accounting Standards Update will be released on 25 February, bringing US GAAP reporters in line with IFRS 16's release last month
At the 17 February 2016 US Financial Accounting Standards Board (FASB) meeting, an announcement was made that the new Leases Accounting Standards Update will be released on 25 February.
A major change in the new guidance is that lessees will be required to present right-of-use assets and lease liabilities on the balance sheet.
The new guidance will be effective for public business entities for fiscal years beginning after 15 December 2018, including interim periods within those fiscal years (ie, 1 January 2019, for a calendar year entity).
Non-public business entities should apply the new guidance for fiscal years beginning after 15 December 2019 (ie, 1 January 2020 for a calendar year entity), and interim periods within fiscal years beginning after 15 December 2020.
The international version of the standard, IFRS 16 Leases, which is effective for annual reporting periods beginning on or after January 1, 2019 was published by the International Accounting Standards Board (IASB) on 13 January 2016.
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