Operating and capital leases are two types of treatments of equipment leases. The type of lease not only determines how the lease is is booked, ... (FASAB) accounting regulations.

In February 2016, FASB issued new lease accounting requirements in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under its core principle, a lessee recognizes a right-of-use (ROU) ...

Under current accounting standards, a lease is classified as a “Capital Lease” or an “Operating Lease.” A capital lease is treated similarly to a loan; the asset is treated as being owned ...

With the lease accounting standard changes from the U.S. Financial Accounting Standards Board (FASB) and The International Accounting Standards Board (IASB), there will be a growing responsibility ...

A capital lease agreement, also referred to as a lease-purchase agreement, refers to a lease that is actually more like a purchase based on the terms of a loan. The Generally Accepted Accounting ...

With the new lease standard, Financial Accounting Standards Board (FASB) ASC 842, soon to be in effect for private companies with fiscal years beginning after Dec. 15, 2021, now is the time for ...

The accounting associated with finance leases is virtually identical to existing capital lease accounting. The big change is that operating leases will now also be reflected on the lessee’s ...

It took a long time before FASB issued Statement No. 13 in 1976, which was the first and only standard that significantly increased the recognition of leased assets and lease debts. Even so, FASB ...

Leasing contracts are usually classified as operating or capital (finance) leases. While the distinction is mostly irrelevant for small-ticket transactions such as leasing a car, it has important ...

After several years of delay and extended implementation dates, the new lease standard (FASB ASC Topic 842) is finally effective in 2022 for most private companies.

Beginning next year, all private companies will have to include each of their leases – from company cars to office space to equipment – on their balance sheets. The new accounting standard is ...