- Many companies are not complying with the Financial Accounting Standards Board’s (FASB) new standard (ASU 2016-02) for reporting operating lease assets and liabilities on the balance sheet.
- While companies are better about disclosing the NPV obligation, the two worst areas of disclosure and compliance are future annual payment tables and discount rates.
- Without compliant disclosures, investors cannot measure the real value of operating lease/ROU asset and liabilities.
For further details see:
New Operating Lease Disclosures: The Good, The Bad And The Non-Compliant