The Impact of ASC 842 – The New Lease Standard Is Here

It is time for contractors to get serious about the FASB ASU 2016?02 ASC 842 Leases, the new lease accounting standard issued by the Financial Accounting Standards Board (FASB). The contractor’s focus should be on the impact the lease standard will have on the company, specifically bank and surety considerations, and the specific attributes such as embedded leases, related party leases, consolidation (when there is a variable interest entity), and how to apply the standard to these situations.