lease accounting rules Archives - DWC CPAs and Advisors

Updated Accounting Rules for Common Control Leases

On March 27, 2023, the Financial Accounting Standards Board (FASB) published narrowly drawn amendments to the lease accounting rules. The updated guidance clarifies issues that are relevant to rental agreements between businesses that have the same owner. Written vs. Verbal Leases Accounting Standards Update (ASU) No. 2023-01, Leases (Topic 842)

Last-Minute Changes to Lease Accounting Rules

Accounting Standards Codification Topic 842, Leases, requires organizations to report the full magnitude of their long-term lease obligations on their balance sheets — a historic first. For private companies and nonprofits, the changes take effect this year. Public entities adopted the rules in 2019. While the Financial Accounting Standards Board