After years of discussion, public comment and debate, new lease accounting standards have been released by both the U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). Essentially, the new standards require companies to recognize on their balance sheets assets and liabilities for leases with terms that extend more than 12 months.
The new guidance applies to companies using U.S. Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) for their financial reporting. The new standards will provide greater transparency and information for decision-making to investors and other users of financial reports.
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