(Chapter 21) The newly effective U.S. GAAP and IFRS standards for leasing both focus on the lessee's reporting. For leases with terms longer than one year, what is the biggest change arising from the new accounting standards? Both a lease asset and liability will always be included on the balance sheet. Lease Expense will always be reported on the balance sheet. Rent Expense will always be reported on the income statement Lease assets will be excluded from the balance sheet