Construction accounting update – New lease rules may add ink to your balance sheet

Description

Abstract: Many construction companies lease vehicles or equipment for use on their projects. Earlier this year, the FASB issued its long-awaited update revising the appropriate treatment of leases on financial statements. This article covers some of the pertinent details of ASU No. 2016-02, Leases (Topic 842). A sidebar looks at how the guidance affects businesses that act as lessors.