Discussion:
You work for a CPA firm that provides accounting and consulting services for a diverse group of clients. Most of these companies are involved in leasing activities as lessees. Write a one to two page memorandum to be sent to these clients explaining the coming changes in lease accounting for lessees. Be sure you discuss the following:
• FASB update that caused the change and effective date
• Main differences from current lease standard
• Types of leases
• Criteria for classification
• Financial statement effects
• Disclosures
Your memorandum will be evaluated based on responsiveness to requirements, coherent organization, conciseness, clarity, grammar, and quality of presentation.