If you are working in an accounting department, you should already be aware that this is one of the next major changes on the new leasing standard that will kick into effect from January 2019. While we still have more than a year to go, many companies are already preparing to shift into the new leasing standard as they start to look into their leasing activities from 2018 onwards to meet the criteria later on.
The End of the Operating Lease
Under the existing rules, lessees generally account for lease transactions either as an off-balance sheet operating lease or as on balance sheet finance leases.
The new standard requires the lessees to recognize nearly all leases on the balance sheet in their PPE and then capitalize this by depreciating the items for the remaining useful lives of the assets.
Who Will Be Affected?
Many companies uses ...
