FASB Recent Lease Accounting Pronouncements
Are you ready to take appropriate action following the FASB recent accounting pronouncements? If your company uses leases as a major operational tool, you may be surprised to learn the true impact of the upcoming FASB lease accounting change.
Without proper preparation, your accounting and finance teams could find themselves struggling to comply with the new regulations. Instead of taking that risk, why not support your transition to the new FASB lease standard with help from Visual Lease? Our comprehensive technology solutions help you manage all types of leases, giving you the information advantage when it comes to submitting documentation for compliance.
Visual Lease software is designed to help clients quickly access both their lease documentation and the lease accounting information, providing you with the important data you need to make operational decisions and report your activity appropriately. Let us help you with the shift to these new FASB requirements.
What the FASB recent accounting pronouncements mean for our clients
Changes to the FASB code will now require companies to report both finance (capital) leases and operating leases on their balance sheets. This FASB lease accounting change is primarily anticipated to affect lessees, with fewer impacts on the lessors. Now, for your FASB lease reporting, organizations must provide the following information for operations leases:
- Classification of all cash payments associated with operating activities in your cash flow statement
- Recognition of a single cost, with the cost of the lease spread in-line over the term of the leas
- Right-of-use and lease liability
These updates are unlikely to prevent businesses from obtaining the necessary resources for conducting everyday business, but they could significantly affect your reporting structures. These data-driven changes require support from a tech partner that can help your business carefully track material and real estate leases — they require help from Visual Lease.
Let us help you transition to these new FASB recent accounting pronouncements, offering a seamless shift that keeps your organization compliant. Contact our team today to learn more.