TASK
- Week 8 Assignment – Impact of Financial Accounting Standards Board (FASB) Accounting Standards Update ASU 2016-02, Leases
Overview
Accounting is the language of business, and it is not a dead language! The FASB is responsible for ensuring that all relevant and material financial information is properly codified in the Generally Accepted Accounting Principles (GAAP).The use of off-balance-sheet financing distorts the real liabilities of companies and is a topic of long-lived concern. ASU 2016-02, Leases, is the most recent action of the FASB to address this issue. The standard is currently effective for public business entities, employee benefit plans, and not-for-profit conduit bond obligors and delayed for private companies and private not-for-profits.
Instructions
For this assignment, you will select a company of your choice or use one of the companies you researched in your weekly discussions to write a 3–4-page report in which you:- Summarize the impact of ASU 2016-02, Leases on the recording of leases.
- Analyze the impact of the standard on the reporting of your chosen company’s leases.
- Analyze the impact of lease concessions or lease modifications on the reporting of your chosen company’s leases.
- Compare and contrast the impact that ASU 2016-02, Leases will have on the financial ratios of your chosen company.
- Use at least four quality academic resources in this assignment. Note: Wikipedia and similar websites do not qualify as academic resources.
- This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.The specific course learning outcomes associated with this assignment are:
- Determine the impact of accounting standards on the recording of leases for a given company including an analysis of its effect on financial tools.
