By: Robert Freedman.
FASB is delaying the move to ASC 842 but, if you need money, the transition could provide it in some of the lease terms.
The transition to new lease accounting standards provides an opportunity to tap cash you otherwise might not know you have and help your organization survive the downturn, says Matt Waters, lease accounting director at commercial real estate data company Co-Star Group.
The Federal Accounting Standards Board (FASB), under its ASC 842 standard, requires all organizations to disclose operating leases on their balance sheet, both as an asset and a liability, in the same way as capital leases. It is no longer permissible to disclose leases as expenses on the income statement and in the footnotes to the financials.
Source: CFO Dive (2020)