Chief Insights

Episode #5: The Real Impact of the New Lease Standard

Released on February 19, 201910 mins 19 secs
Hosted by Marie Brilmyer & Phil Ryan

Marie Brilmyer and Phil Ryan, partners in the firm’s A&A Department, dig into the new lease standard for financial reporting to reveal how it may impact important financial metrics, such as working capital and EBITDA, and ultimately how that could impact your business.

The Financial Accounting Standards Board (FASB) issued its long-awaited update revising the proper treatment of leases under U.S. Generally Accepted Accounting Principles (GAAP). Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), will affect companies that lease real estate, vehicles, construction and manufacturing equipment, and other assets. The standard requires these businesses to recognize most leases on their balance sheets, potentially inflating their reported assets and liabilities.

Learn more about the standard in these blogs: