The Financial Accounting Standards Board’s new standard for accounting for leases is poised to take effect for public companies and certain other entities for periods beginning after December 15, 2018. Although early adoption is permitted, other organizations that follow U.S. Generally Accepted Accounting Principles must comply for annual periods beginning after December 15, 2019, and for interim periods beginning a year later. This article discusses how the standard will directly affect companies that lease assets, as well as its impact on lessors, too, particularly when negotiating leases with tenants.
