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February 25, 2016 — Leases — FASB Issues ASU

Accounting Journal Entry

Leases — FASB Issues ASU

February 25, 2016 — Today, the FASB issued its new standard on leases, ASU 2016-02. The new standard introduces a new lessee model that brings substantially all leases on the balance sheet. In addition, while the new standard retains most of the principles of the existing lessor model in U.S. GAAP, it aligns many of those principles with ASC 606.1 The new standard represents a wholesale change to lease accounting and will most likely result in significant implementation challenges during the transition period and beyond.