February 19, 2016 — FASB Announces Issuance Date of Leases ASU
Accounting Journal Entry
FASB Announces Issuance Date of Leases ASU
February 19, 2016 — At its February 17, 2016, meeting, the FASB announced that it expects to issue its standard on accounting for leases, ASU 2016-02, on Thursday, February 25, 2016.
The new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 (i.e., calendar periods beginning on January 1, 2019), and interim periods therein. For all other entities, the ASU will be effective for annual periods beginning after December 15, 2019 (i.e., calendar periods beginning on January 1, 2020), and interim periods thereafter. Early adoption will be permitted for all entities.
A Heads Up publication on ASU 2016-02 will be published shortly after the FASB issues the ASU.
Editor’s Note: As companies prepare to issue their annual financial statements, they should consider the guidance in SAB Topic 11.M,1 which requires SEC registrants to disclose the effect of new pronouncements that have been issued but are not yet effective. Although SAB Topic 11.M applies to SEC registrants, it is considered best practice for nonregistrants to also provide these disclosures.