Overview

EZLease provides lease accounting compliance for a few different accounting standards; ASC 842, GASB 87, IFRS 16, and most recently, GASB 96. Each standard is regulated by an accounting standards board; Financial Accounting Standards Board (FASB), Governmental Accounting Standards Board (GASB), and the International Accounting Standards Board (IASB).

Financial Accounting Standards Board (FASB)

The Financial Accounting Standards Board (FASB) is a private, independent organization responsible for establishing and improving financial accounting and reporting standards in the United States. One significant area of focus for FASB is lease accounting.

In 2016, FASB introduced the new Accounting Standards Update (ASU) No. 2016-02, commonly known as ASC 842, to overhaul lease accounting and increase transparency. The new standard requires lessees to recognize lease liabilities and right-of-use assets on their balance sheets for most leases, including operating leases. This change aims to provide a more accurate representation of a company's financial position by reflecting the long-term lease commitments.

For more, visit www.fasb.org 

Governmental Accounting Standards Board (GASB)

The Governmental Accounting Standards Board (GASB) is an independent organization that establishes accounting and financial reporting standards for state and local governments in the United States. GASB's primary goal is to enhance the transparency and accountability of governmental financial reporting.

In the context of lease accounting, GASB Statement No. 87 (GASB 87), titled "Leases," addresses how state and local governments should account for leases in their financial statements. The standard is effective for reporting periods beginning after December 15, 2019. More recently, GASB statement No. 96 (GASB 96) was introduced, providing guidance on the accounting and financial reporting for subscription-based information technology agreements (SBITAs) for government users (governments).

Entities subject to GASB rules include public benefit corporations and authorities, public employee retirement systems, and governmental utilities, hospitals, colleges, and universities, as well as states and political subdivisions.

For more, visit www.gasb.org 

International Accounting Standards Board (IASB)

The International Accounting Standards Board (IASB) is an independent international organization that develops and sets accounting standards known as International Financial Reporting Standards (IFRS). The IASB's primary goal is to create a single set of high-quality, globally accepted accounting standards to enhance transparency, comparability, and consistency in financial reporting worldwide.

Regarding lease accounting, the IASB introduced IFRS 16, which became effective for reporting periods beginning on or after January 1, 2019. IFRS 16 replaced the previous standard, IAS 17, and significantly changed the accounting treatment for leases. 

For more, visit www.ifrs.org