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in early 2016 the FASB issued a new standard intended to improve financial reporting about lease transactions in this video will demonstrate how organizations at lease assets referred to as lessees can apply the new standard specifically we will look at the scope of the new standard whats changing or not changing and how easy it is to put it on the balance sheet similar to existing gap the new standard only applies to leases of property plant and equipment or things like land and depreciable assets and then to determine whether or not the guidance applies or whether you are in scope you have to first determine whether the contract contains an identified asset and identified asset exists when it is either explicitly or implicitly specified in the contract and the supplier cannot have the practical ability to substitute the asset or if it does it cannot economically benefit from such substitution now also the lease contract must convey the right to control the use of the asset during th
