Deloitte
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On the Radar

Leases

December 2022
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On the Radar
Leases

Lease accounting is currently like a tale of two cities: companies that have adopted the new leasing standard, ASC 842, are in one place and entities that have not yet adopted the standard are in another. While companies that have already adopted ASC 842 may be focusing more on the potential for FASB activity1 and the impact of real estate rationalization efforts on lease accounting, entities that have not yet adopted ASC 842 are still grappling with implementation challenges. Because public business entities (PBEs) were required to implement the new leasing standard for years ended December 31, 2019, most public companies have been accounting for their leases under the new rules for nearly four years. On the other hand, many non-PBEs have not yet reported their financial statements after their ASC 842 effective date. See the Implementation Considerations for Entities That Have Not Yet Adopted ASC 842 section below for more information about the effective dates for non-PBEs.

Footnotes

1
This On the Radar takes into account all FASB standard-setting activity through November 15, 2022.