Top 10 New Lease Accounting Standard Guides and Resources

By May 16, 2016Blog

Are you looking to understand the new lease accounting standards? The good news is that a wealth of excellent documentation has been produced. The bad news is that it would take months to read it all. The boards (FASB and IASB) have each published impact analysis studies and detailed accounting examples in addition to the actual standards documentation. Each of the Big Four (PWC, EY, Deloitte, and KPMG) have published excellent perspectives and discussion documents as well as guides to interpret the standards. Below is our Top 10 list of new lease accounting standard guides and resources available on the web.

The Top 10 New Lease Accounting Standard Guides and Resources

FASB

1) FASB Accounting Standards Update 2016-02 Leases (Topic 842)

The obvious place to start is with the actual standard published by FASB on February 25, 2016. The document includes background information on the standards as well as the specific accounting changes for lessees and lessors. Although the FASB standard is the definitive source for the new lease accounting rules, some of the guides published by the Big Four may be easier to digest for those new to the area of lease accounting. (No registration required).

Visit FASB’s website.

IFRS

2) IFRS Effects Analysis

One of the easiest documents to read is the IFRS Effects Analysis as it it full of accounting examples and case studies along with diagrams and illustrations. The Effects Analysis includes in-depth explanations of the impact of IFRS 16 on the balance sheet, income statement, and cash flow statement. It also provides a summary of the effects on cost of borrowing, debt covenants, and regulatory capital requirements. (No registration required).

Visit the IASB website.

PWC logo

3) PWC Leases – 2016 Edition

Arguably, the most comprehensive guide to the new lease accounting standards out there, it’s also one of the longest at 280 pages. PWC’s leasing bible provides discussions on lease definition, lease classification, financial statements, effective dates, and the transition process. (No registration required).

Visit the PWC website.

EY logo

4) EY Technical Line

A 200-page comprehensive technical accounting guide to the new FASB ASU 2016-02 standard, the guide provides an overview of key concepts such as lease term, purchase options, discount rates, economic life, and fair value. It then dives into detailed discussions of lease classification, subleases, sale-leaseback, and lessee and lessor accounting. (Registration required).

Visit the EY website.

EY logo

5) EY Analysis by Vertical Industry

The only analysis by vertical industry that we have seen specific to lease accounting. EY explains how the new standards will impact automotive, airlines, consumer products, financial services, health care, real estate, retail, metals and mining, engineering and construction, and telecommunications and cable industries. The guide includes great industry-specific studies and accounting examples. (Registration is required to access).

Visit the EY website.

KPMG Logo

6) KPMG Similarities and Differences between US GAAP and IFRS

Presented in tabular format, this easy-to-read guide highlights similarities and differences between US GAAP and IFRS. It provides side-by-side comparisons for accounting models, discount rates, and variable lease payments for the income statement, balance sheet, and cash flows.
(No registration is required).

Visit the KPMG website.

Deloitte logo

7) Deloitte Heads Up Guide

A 40-page technical brief on the new standard. It includes a table comparing the FASB and IFRS standards as well as detailed discussions on lease classification, term, payments, discount rates, and short-term leases. (No registration is required).

Visit the Deloitte website.

KPMG Logo

8) KPMG Leases In-Depth

Lives up to it’s title, at 450 pages it is the most “In Depth” technical brief we have seen published. Covers all the key issues such as subleases, sale-leaseback, income taxes, disclosures, and business combinations from both a lessee and lessor perspective. Loaded with illustrations and charts, it is much easier to follow the accompanying text. (No registration is required).

Visit the KPMG website (opens PDF).

AICPA-logo

9) AICPA Financial Reporting Brief: Leases

At six pages, this AICPA guide provides a concise overview of the new standard. It explains impacts to lessees and lessors. It outlines key concepts of the standard, including definition of a lease, separation of non-lease components, lease term and purchase options, and variable and in-substance fixed lease payments. It explains differences between IFRS and FASB standards for balance sheet and incomes statement presentation as well as for complex issues such as sale-leaseback and subleases. (No registration is required).

Download the Brief from the AICPA website (opens PDF).

Lease Accelerator Logo

10) LeaseAccelerator Lease Accounting Handbook

Authored by Michael Keeler and Bruce Conway of LeaseAccelerator, this handbook provides CFOs, treasurers, controllers, technical accountants, and financial reporting directors involved with advice and detailed guidance on how to meet the external compliance requirements and the internal fiduciary responsibilities.
(Registration is required).

Download the Lease Accounting Handbook.