A Roadmap to Applying the New Leasing Standard (June 2020)
- Download the PDF version (available without subscription; not updated after issuance).
- View the active version (subscription required; updated as warranted). For subscribers, links to substantive changes made to the Roadmap since its issuance, if any, will be provided below.
Since the issuance of ASU 2016-02
(codified in ASC 842) on February 25, 2016, the FASB has focused on implementation
efforts related to the adoption of ASU 2016-02. Over the past four years, the FASB
has held multiple meetings to discuss implementation questions raised and challenges
identified by stakeholders from several industries. In response to the feedback
received, the FASB has issued several final ASUs that amend certain aspects of ASC
842 and may propose ASUs to further clarify or amend its guidance.
The body of the Roadmap combines the requirements in
ASC 842 with Deloitte’s interpretations and examples in a comprehensive,
reader-friendly format. In addition, the Roadmap highlights (1) the requirements of
ASC 842 that significantly differ from those in ASC 840 and IFRS 16 and (2) recent
standard-setting developments (through the May 20, 2020, FASB meeting). We hope that
this publication will enable entities to deal with some of the more challenging
aspects of ASC 842. This publication has been developed for readers who have been
following every development of the standard as well as for those who are working
through the new guidance for the first time. That is, it may function as a quick
resource guide for those who have a specific question and are looking for a clear
answer, or it may serve as an all-encompassing guide for those who are still
building up their knowledge base related to the new leasing standard.
Further, the updated edition of this Roadmap includes
several new interpretations as well as some modifications to previously expressed
views to reflect our latest thinking and input from standard setters and regulators.
Appendix H highlights all new content as well as any substantive revisions to
previous content.
Although the mandatory effective date for public
companies has passed, challenging questions remain, and we expect new implementation
questions to continue emerging. Accordingly, we will continue to develop guidance to
help stakeholders with implementation.
Be sure to check out other titles in Deloitte’s Roadmap
series, our comprehensive, easy-to-understand collection of
accounting guides on selected topics of broad interest to the financial reporting
community.
Summary of Changes Since Issuance (Links Are Available to Subscribers Only)
The following change was added to this Roadmap since its issuance in June 2020:
Date of Change
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Section
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Title
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August 28, 2020
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Permissibility of Non-PBE Adoption Dates for Other Entities’
Financial Statements or Financial Information Required in a
Registrant’s Filings
|