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September 2018 » An Analysis of the New Sale and...
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Josef Rashty, CPA
In February 2016, FASB issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). Topic 842 will supersede the existing lease guidance (Topic 840), which has been in effect since 1977. ASU 2016-02 will become effective for public companies for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2018. For private companies, the standard will become effective for fiscal years beginning after December 15, 2019 (and interim periods beginning the following year). The standard permits early adoption and requires use of a modified retrospective transition method.
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