FASB’s contemporary paintings time table has integrated proposed enhancements to source of revenue tax accounting associated with the hot tax regulation adjustments, the 2018 GAAP monetary reporting taxonomy, income popularity, derivatives and hedging, and rent accounting. FASB issued a proposed Accounting Requirements Replace (ASU) in early January 2018 to deal with implementation problems for ASU 2016-02, Rentals (Matter 842), which can have an effect on 2018 or 2019 monetary statements. The 2016 ASU calls for lessees to acknowledge rent liabilities in accordance with the prevailing worth of final rent bills, and calls for further disclosures by means of lessors and lessees; the 2018 replace issues the separation of non-lease parts from rent parts and the adoption date ().
This column main points a number of helpful and loose resources of rent accounting knowledge to be had at the Web, together with weblogs, movies, and a loose rent calculator.
Contents
KPMG Monetary Reporting View
KPMG’s Monetary Reporting View weblog (https://frv.kpmg.us) covers a number of matters intimately, and the Reference Library (https://frv.kpmg.us/reference-library.html) is a wonderful supply of knowledge on FASB, IFRS, and SEC updates, in addition to get right of entry to to KPMG-sourced fabrics. The rentals matter may also be discovered at https://frv.kpmg.us/all-topics/rentals.html. One remarkable loose useful resource is KPMG’s 755-page rent accounting manual, printed in December 2017 (). The manual is written in transparent, simple English, with simple to practice “mini-tables” on explicit problems; it covers the definition of a rent, isolating parts of a freelance, ideas and definitions for lessees and lessors, lessee and lessor accounting, and plenty of different matters. The appendices come with an index of Q&As, in addition to a at hand listing of examples that hyperlink again to the manual dialogue.
The yearly “Accounting Trade Survey: Income and Leasing” for 2017 () printed that 60% of taking part corporations have met sudden demanding situations, together with figuring out embedded rentals and settling on and imposing a leasing gadget. Leasing implementation prices, together with the desire for brand spanking new rent accounting instrument, have exceeded budgeted quantities for 40% of respondents. The 32-page survey effects with motion steps may also be downloaded as a PDF structure.
The webcast “New Rentals Usual Implementation Phase I: A Dialog with the FASB,” which in the beginning aired in October 2017 (), covers utility steps that businesses must be taking to conform to the brand new usual, in addition to KPMG views and decided on accounting implementation problems. It additionally features a abstract of KPMG’s survey of monetary commentary preparers on how they be expecting to be impacted by means of the brand new criteria and the extent of growth they’re making towards implementation. “New Rentals Usual Implementation Phase II: Key Accounting Problems and Implementation Issues,” which aired in November 2017 (), addresses technical implementation problems in additional element, akin to the brand new definition of a rent, allocation to rent and non-lease parts, asset impairment, accounting and reporting affects, and methods and processes affects. The webcasts run for 90 mins each and every and come with downloadable slideshows.
PricewaterhouseCoopers CFO Direct
Very similar to KPMG, PricewaterhouseCoopers’s CFO Direct weblog (https://www.%.com/us/en/cfodirect.html) items knowledge on numerous accounting criteria, monetary reporting, and present regulatory occasions. The Hire Accounting webpage (https://%.to/2nrUd93) promotes PricewaterhouseCoopers’s Hire Accounting Information, the In Transition e-newsletter factor on “Sensible Insights on Hire Transition,” and a podcast collection on more than a few matters. The Hire Accounting Information (https://%.to/2nmxCe8), up to date in March 2017 and downloadable as a 283-page PDF and iBook utility for iPads, discusses preparations that fall beneath the brand new rent pointers, classification and accounting for lessors and lessees, distinctive leasing transactions akin to sale leasebacks and leveraged rentals, and fiscal commentary presentation.
The In Intensity e-newsletter on “The Leasing Usual: A Complete Take a look at the New Fashion and Its Affect” (https://%.to/2EoWsRD) provides a shorter learn (20 pages) protecting key provisions, contract issues, lessor and lessee accounting, rent phrases and different comparable matters. There’s a very helpful desk that describes vital variations from the previous criteria and offers PricewaterhouseCoopers’s observations (p. 15). The Hire Accounting Trade Dietary supplements webpage (https://%.to/2FxNP6Q) supplies detailed steering for 12 other industries, akin to automobile, banking and capital markets, power, insurance coverage, and generation. Every trade has a brief corresponding downloadable In Intensity e-newsletter.
Different Loose Sources
Along with the extra detailed fabrics mentioned above, there are a number of different resources of fast and sensible knowledge on rent accounting.
PowerPlan (https://powerplan.com/lease-accounting/) is a business supplier of rent accounting instrument. Web site guests who sign up for a loose “Useful resource Information to Hire Accounting Adjustments” acquire get right of entry to to numerous fabrics, akin to whitepapers, movies and webinars, articles, and infographics ().
The whitepaper “8 Issues to Know Concerning the Hire Accounting Requirements Adjustments” () is a one-page abstract that comes with vital reminders, akin to that it isn’t too quickly to begin amassing rent information, that new trying out standards will likely be required sooner or later, and that rent agreements must be routed thru a central accounting serve as. “The New Hire Accounting Requirements: 9 Questions Monetary Execs Must Ask Now” () is a two-page file protecting how rentals will likely be tracked in a different way, having enough contract evaluation processes in position, and attention of the prospective complexities of reporting to other regulatory our bodies. Not unusual pitfalls mentioned in “3 Errors to Keep away from in Your Hire Compliance Plan” come with now not beginning quickly sufficient, now not deliberating the have an effect on on different departments, and now not sufficiently comparing instrument ().
PowerPlan’s on-demand webinar “It’s an Iceberg: Making ready for the Complete Affect of ASC 842 and IFRS 16 Hire Accounting Requirements” is a 30-minute video that discusses making checklists for coping with new leasing problems, the desire for perpetual compliance when corporations have more than one leased belongings, and techniques for extra successfully managing compliance (http://wi.st/2rR2N60).
FASB Replace Hyperlinks
FASB’s web site provides a number of tutorial sources at the rent criteria, together with 3 brief movies (“Hanging Rentals at the Steadiness Sheet,” “Rentals: A Fast Instance of the Show Manner,” and “Why a New Rentals Usual?”), in addition to an extended webcast, “Accounting for Rentals Primer—New Regulations Efficient for Calendar Yr 2019” (). The primer webcast items an outline of the brand new rent type, discusses the brand new approaches for finance and running rentals and variations with IFRS 16, supplies a number of sensible examples, and addresses monetary commentary disclosures.
In any case, ContractNet (http://contractnet.io/accountants/), a business supplier of contract management instrument, addresses numerous contract varieties together with rentals. The web site provides a loose rent calculator () that comes with enter for rent time period knowledge, rent prices to capitalize, and rent issues; it outputs an ROU asset time table, a legal responsibility time table, and an amortization time table, all of which may also be exported to Excel.
Supply By means of https://www.cpajournal.com/2018/03/13/lease-accounting-standards-resources/