How about that new lease-reporting standard? New accounting rules call for constant vigilance

Description

Abstract: Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) took effect for privately held businesses in 2022. This new lease-reporting standard sets forth rules that could markedly affect certain financial ratios for construction companies that lease property and equipment. This article reviews the old rules, describes the new rules and discusses how the new standard may impact some of those ratios. A sidebar notes that the new lease-reporting standard could impact a construction company’s tax liability.