Leasing is a common financial solution that enables companies to use real estate properties, assets and equipment without initial investments and large initial cash outflows. Leasing is also a common practice to increase portfolio flexibility and to free up financing for investments in the core business. The new regulatory lease accounting standards ASC 842 and IFRS 16 set forth by the US-based Financial Accounting Standards Board (FASB) and allied International Accounting Standards Board (IASB) drastically change the way leases are treated in accounting and have large impacts on a company’s balance sheet and financial position. New lease accounting standards: ASC 842 and IFRS 16 FASB and IASB have been reviewing the lease accounting rules called US Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS). The key objective is to enhance financial transparency by having the liabilities that asset and property leases incur be represented on the balance sheet. The new lease accounting standards relevant for compliant property and asset lease accounting management are ASC 842 and IFRS 16. They were published by FASB and IASB in February 2016, and will be effective for public companies starting in the fiscal year 2019.