Our advocacy partners are state CPA societies and other professional organizations, as we inform and educate federal, state and local policymakers regarding key issues. The Board issued the ASU as part of its simplification initiative aimed at reducing complexity in accounting standards. IFRS 16 is effective for annual reporting periods beginning on or after 1 January 2019, with earlier application permitted (as long as IFRS 15 is also applied). See ASU 2016-18 for examples. 2020-05 also deferred the effective dates for applying ASC 606 for certain entities. Our advice for now? Trying to log in to another AICPA website? No. According to ASU 2016-02, a lease conveys the right to control the use of an identified property, plant, and equipment (an identified asset) for a period of time in exchange for consideration. The FASB issued ASU 2018-10 [1] which affects narrow aspects of the guidance in ASU 2016-02, Leases (Topic 842). This site uses cookies to store information on your computer. To discuss how our team can help your business, contact us by phone 800.274.3978 or. October 19, 2016 View the report as a PDF On August 18, 2016, the FASB issued Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities.The amendments in this ASU are intended to improve financial statement presentation by not-for-profit (NFP) organizations—a model that has existed for … The Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update (ASU) 2020-02, Financial Instruments – Credit Losses (Topic 326) and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. But it's one that will reap big rewards if you choose to pursue it. IFRS 16 began as a convergence project with the FASB. Spend your time wisely, and be confident that you're gaining knowledge straight from the source. Association of International Certified Professional Accountants. The FASB issued ASU 2018-03 to address questions raised about its recent standard on financial instruments, ASU 2016-01. FASB Issues Clarifications to Leases Standard. ASU No. 2016-02, Leases (Topic 842) Posted Feb 26 2016 3:43 PM by Amanda Horvath. p. resentation on the statement of cash flows—sales-type and direct. To get your license, keep 3 E's in mind: education, examination and experience. 2016 FASB REVIEW . The new standard applies to leases other than short term leases. 2016-02, Leases (Topic 842). By: Russ Madray. The effective date and transition requirements of the proposed ASU would be consistent with those of ASU 2016-02. paragraph 110 in the Basis for Conclusions of ASU 2016-02 that the conceptual basis for excluding leases of intangible assets, inventory and assets under construction from the scope of the new standard is unclear, it nonetheless decided to continue to limit the scope of the new standard to property, plant or equipment only. ASU 2017-03 applies to ASU 2014-09, Revenue from Contracts with Customers (Topic 606), ASU 2016-02, Leases (Topic 842), and ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Some are essential to make our site work; others help us improve the user experience. On January 12, 2016, the International Accounting Standards Board issued its much-anticipated leases standard, IFRS 16. View ASU_2016-02_Section_C from ASU 2016 at Arizona State University. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) Effective Dates for Certain Entities, which, among other provisions, deferred the effective dates for applying ASC 842 for certain not-for-profit entities that have not yet issued financial statements or made financial statements available for issuance as of June 3, 2020. 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