When it comes to the hottest accounting issue for banks, the Financial Accounting Standards Board’s upcoming current expected credit loss (CECL) standard is typically what comes to mind. But there is another issue on the horizon: the updated lease accounting standards.
Earlier this year, FASB issued the update to improve how banks report and track their leases. The approach was to take the information, which has been historically considered “off balance sheet,” and record these items directly on the financial statements.
How things will change
The talks around reevaluating this standard date back to 2006 and it’s been easy to tune out that conversation. However, the new standards will be here before you know it. (Jan. 1, 2019, for public companies, Jan. 1, 2020, for private companies).
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