A small business accounting for lease agreements on its financial records must differentiate between capital and operating leases. A capital lease must meet certain criteria for classification, and ...

Accounting standard setters classify leases as operating or capital to differentiate true lease agreements from purchases disguised as leases. If the lease has any of the following characteristics, it ...

FASB Accounting Standards Codification (ASC) Topic 842, Leases, issued in February 2016, marked a significant overhaul in the financial reporting of long-term leases. Its adoption created many ...

A new accounting rule added nearly $3 trillion to corporate balance sheets in Q1. Operating lease obligations, formerly buried in the footnotes, must now be reported as a liability – and corresponding ...

ASC 842, the new lease accounting standard, represents the most significant change in decades to the way companies account for leases under U.S. GAAP. For the first time, companies are required to ...

Operating leases have long been a common mechanism for companies to access and use assets without owning them outright. Historically, many of these leases were kept off the balance sheet, limiting ...

According to reports from the Securities and Exchange Commission and the U.S. Chamber of Commerce, U.S. companies currently have an estimated $2.8 trillion in operating lease obligations that are ...

Accounting for leases, which always has been a complex area, is undergoing significant change with the release of new standards by FASB and the International Accounting Standards Board (IASB).

For companies that lease vehicles – finance and full-service – new accounting standards recently unveiled by the Financial Accounting Standards Board (FASB) will impact their financial reporting, but ...