Real Estate & Construction
Final Overtime Rule on Hold
A November 22 preliminary injunction has blocked the Final Overtime Rule scheduled to become effective Thursday. Last week’s ruling by Federal Judge Amos Mazzant determined that the Department of Labor overstepped its authority by amending the salary threshold for employees exempt from overtime pay. The overtime rule would have increased the salary level for exempt white collar employees to $913 per week. Nearly two dozen governors and attorneys general challenged the overtime rule. Judge Mazzant sided with the plaintiffs, saying that the Department of Labor could not create a distinct standard for overtime eligibility. The Department of Labor is likely. Read More.
FASB Issues Lease Accounting Standard
Today, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). The long-awaited guidance is intended to improve financial reporting for leasing transactions. The FASB estimates that there is over $1 trillion of off-balance sheet operating lease commitments for SEC registrants based on a 2005 Securities and Exchange Commission report. The new guidance will require lessees to recognize a right of use asset and related lease liability. Using the classification similar to Topic 840, the ASU identifies financing leases and operating leases. Financing leases would recognize amortization and interest expenses, while operating leases would. Read More.
FASB Begins Next Phase of Business Definition Project
After issuing Proposed Accounting Standards Update (ASU) No. 2015-330 , Business Combinations (Topic 805): Clarifying the Definition of a Business, the Financial Accounting Standards Board (“FASB”) recently moved forward with the second phase of its business definition project. On Monday, November 23rd, the accounting board began discussions on clarifying the accounting for partial sales and retained interests in real estate transactions and similar deals. No decisions were made because most FASB members need more time to focus on complex issues before taking any formal action. In particular, the FASB has to consider ASU No. 2014-09, Revenue From Contracts With Customers. Subtopic 610-20, Other Income—Gains and Losses from the. Read More.