Reference no: EM132461703 , Length: 8

Impact of Financial Accounting Standards Board (FASB) Accounting Standards Update ASU 2016-02 Leases

• 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 Generally Accepted Accounting Principles (GAAP).

• The use of off balance sheet leases to distort the real liabilities of companies is a topic of long-lived concern. ASU 2016-02, Leases, is the most recent action of FASB to address this issue.

For this assignment you will select a company of your choice or use one (1) of the companies you researched in your weekly discussions to write a six to eight (6-8) page report in which you:

Question 1: Summarize the impact of ASU 2016-02, Leases on the recording of leases.

Question 2: Discuss at least three (3) elements featured in the current information reported by your chosen company for its leases.

Question 3: Analyze the impact of the new standard on the reporting of your chosen company's leases.

Question 4: Compare and contrast the impact that ASU 2016-02, Leases will have on the financial ratios of your chosen company.

Question 5: Determine the impact of the changes to accounting for leases on the recommendations of stock analysts for your chosen company.

• Use at least four (4) quality academic resources in this assignment.