A proposed ASU subject to a 15-day comment period is expected in the near term. The new FASB and IFRS lease accounting standards (ASC 842 and IFRS 16) will take effect in 2019 for public companies and in 2021 for private companies. These are contracts, many times service agreements often not even containing the word lease, that contain a leased asset and must be reported under FASB ASC 842. Practitioners have estimated that $2 trillion1 of lease liability will be recorded to S&P 500 balance sheets alone as a result of the application of the new leasing guidance. EY’s 2019 Comprehensive Guide covers the key concepts and challenges of the new ASC 842 lease accounting standard for both lessees and lessors. We provide detailed Q&As, examples and observations, as well as comparisons to legacy US GAAP, updated for continuing developments in practice. Quick Links . This Roadmap combines the requirements in ASC 842 with Deloitte’s interpretations and examples in a comprehensive, reader-friendly format. 2020, the FASB tentatively approved a one-year deferral of ASC Topic 842 for nonpublic business entities. A podcast by our professionals who share a sneak peek at life inside Deloitte. This publication discusses key considerations and issues for accounting and financial reporting related to COVID-19 and the CARES Act. In addition, Tim... More, James is a member of the Accounting Services group in Deloitte & Touche LLP's national office, primarily focused on financial instrument issues and lease accounting. ASC 842, Leases, fundamentally changed the accounting for leases.With increased transparency and comparability being the goal of the standard by the Financial Accounting Standards Board (FASB), nearly all leases are required to be recognized on the balance sheet. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. Many of these processes will be built from the ground up and will involve tasks that need to be repeated for each new lease. It was then that Accounting Standards Codification (ASC) Topic 842, the Financial Accounting Standards Board’s (FASB’s) new standard on accounting for leases, took effect for … Take a strategic look at the financial reporting and accounting challenges related to COVID-19 that are top of mind for many companies as well as trending and ongoing issues. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. For federal tax purposes, leases are treated as either a true lease, sale of asset(s), or a financing transaction. Explore the financial accounting and reporting implications of the CARES Act’s provisions designed to provide relief to small and large businesses. Analysis of their preparation successes and challenges provides critical ASC 842 lessons for private companies approaching a 2021 deadline. He leads the leasing and real esta... More, Sean is a Deloitte Risk and Financial Advisory managing director and CPA in Deloitte & Touche LLP. The ASU supersedes FASB Accounting Standards Codification (ASC) Topic 840, Leases, and creates ASC 842, Leases. company implementations, Implementation considerations for private companies, Applying the new lease accounting standard, Gearing up for the new lease accounting standard, Identifying embedded leases for private companies, US Deloitte Private Audit & Assurance Leader, Managing Director | Deloitte & Touche LLP, Partner | Energy, Resources & Industrials, Telecommunications, Media & Entertainment, What private companies need to know about applying the new lease standard, Learn more about accounting considerations, Frequently asked questions about the FASB’s new leases standard. 2.3.1 ASC 606 — Revenue From Contracts With Customers 17 2.3.1.1 Repurchase Agreements 17 2.3.2 ASC 815 — Derivatives and Hedging 19 2.3.2.1 Derivatives Embedded in a Lease 20 ... 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