The new lease standards that were passed a few years ago are effective for non-public companies in calendar year 2022. This change in the way leases are reported has the potential to negatively impact loan covenants and other financial ratios used when evaluating small businesses.

Kim Fonda, CPA, CFE has provided the attached video to review the changes between what we’re used to seeing and what the new standards will show.   If you are a commercial loan officer, please take a moment and review this video (which is less than 10 minutes) to ensure that clients are reporting under the rules of the new lease standards.