Industry Focus: FASB and the New Leasing Requirements
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Industry Folcus: FASB and the New Leasing Requirements
The ASC 842 rules change how operating leases are reported and how lease data is captured. Here’s a look at how these changes might impact specific industries.
Operating leases are common in the industry, but with the new measures that may change
Revisit your cost analysis for purchases to see if leasing is still the best option
The company's status as for-profit or non-profit may affect the decision as well
Companies tend to lease office space in a variety of locations to reach more qualified talent
Gathering the data on these leases and ensuring they meet the criteria for classification could prove challenging
For those leasing equipment, re-examine your options as the cost-benefit analysis may have changed
Under ASC 842, lease classification is determined in part by who receives the economic benefits
With solar power, this might include who benefits from any tax credits generated by installation
Companies may need to configure lease arrangements to allow the lessee to receive these benefits
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