NEW YORK, Feb. 25, 2016 /PRNewswire/ --
WHAT: Today, the U.S. Financial Accounting Standards Board (FASB) issued the new Leases accounting standard, ASC 842. This replaces current leasing guidance under U.S. Generally Accepted Accounting Principles (U.S. GAAP).
The following KPMG spokespersons are available for interviews to discuss the new leasing standard and considerations for how organizations can prepare for and implement the new standard:
- Kimber Bascom, Global Leasing Standards Leader, KPMG LLP
- Dean Bell, New Leases Standard Implementation Lead Partner, KPMG LLP
WHY: The FASB's new lease accounting standard requires organizations to recognize most leases on-balance sheet, which increases their reported assets and liabilities. For many companies, implementation of the new leasing standard will have broad organizational impacts beyond general accounting and financial reporting, including areas such as legal, real estate, treasury, internal audit, IT, tax, budgeting, training, regulatory, contract management, and forecasting.
Although companies are not required to apply the new leasing standard until 2019, many will find that assessing the new standard's impact across their organization now will allow them to develop an efficient and timely adoption plan given concurrent revenue recognition accounting change implementation efforts. A prompt assessment should provide sufficient time to incorporate a system upgrade or implementation as part of the solution.
WHO: The standard impacts organizations across all industries that utilize leases for real estate, equipment, fleet and automobiles, among others.
TIMING: Public companies will have to adopt the standard for interim and annual periods beginning after Dec. 15, 2018; private companies will need to comply for annual periods beginning after Dec. 15, 2019 and for interim periods beginning a year later. Early adoption is permitted.
OTHER INFO: For more information, see KPMG's article: FASB Balloons Balance Sheet with New Lease Accounting Standard.
The KPMG Leasing Tool for IBM® TRIRIGA® assists organizations with lease accounting change and adoption of the standard.
About Kimber Bascom, Global Leasing Standards Leader – New York
Kimber is partner-in-charge of the Accounting Group of KPMG's Department of Professional Practice – Audit in New York where he leads the development of KPMG LLP's policies on U.S. accounting and financial reporting matters provided to audit engagement teams and clients. He also leads the firm's monitoring of, and interaction with, the Financial Accounting Standards Board (FASB), International Accounting Standards Board (IASB), Emerging Issues Task Force (EITF), and other accounting standards setters. As KPMG's Global Leasing Standards Leader, Kimber leads the development of the international firm's guidance and policies on the application of U.S. and international financial reporting standards to leasing transactions.
About Dean Bell, New Leases Standard Implementation Lead Partner– New York
Dean assists companies with implementing the new leases standard, which includes applying new leasing guidance, and advises clients on U.S. GAAP technical accounting and policy matters. With 18 years of experience in providing assurance and advisory services to a global client base, he also provides technical accounting advisory services to various clients on a range of topics including consolidations, fair value, business combinations, impairments, financial instruments and SEC reporting.
About KPMG LLP
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative ("KPMG International"). KPMG International's member firms have 174,000 professionals, including more than 9,000 partners, in 155 countries. Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.
SOURCE KPMG LLP