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:
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- Determine the impact of accounting standards on the recording of leases for a given company including an analysis of its effect on financial tools.
