If you or your company is involved in a lease, many changes have taken place in the 2019 law that involves the lease term–over a year or less than a year. US GAAP still has a distinction between finance/capital leases and operating leases. Let us help you with this as both are still on the balance sheet but the overall impact is different on the income statement. If leases don’t meet the finance lease test and are treated as operating leases it is VERY important to understand the changes that have occurred.
It is worthwhile noting that US GAAP continues to expense cash operating lease costs on the income statement but no interest or depreciation is expensed. In trading comparables you need to adjust earnings to insure companies are on similar footings whether they report under US GAAP or IFRS. This is certainly important and needs to be handled properly, so please call us for assistance.