Purpose: To provide a historical perspective on the development of Codification Topic 842, current developments with the standard and implications for the CPA exam.
Assignment: Individually develop a 2-3 page (single space) synthesis regarding Topic 842. Each student will submit the assignment on Canvas. In order to differentiate your work, I leave it up to you to locate information necessary to complete this assignment. Suggested sources include news articles by media, press releases by accounting firms, FASB. Please include citations in your summary.
1. Provide background on the development of the new lease accounting standard.
a. A brief timeline on the development of the standard including time for comments on the proposed standard.
b. Why did the FASB deem it necessary to issue a new standard?
2. How is the proposed new standard different than the current standard?
a. What is the basic approach of the standard? For example, how does it change the accounting for operating leases?
3. Provide an update on current developments with the topic.
a. Have there been any amendments to the standard? Why?
b. When will the proposed standard likely take effect?
4. What are implications for the CPA exam?
a. When will the new standard be tested within the FAR section of the CPA exam?
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