Art and Real Estate Clash in Federal Court
When a real estate developer decided to replace 5Pointz in New York City with condominiums, 21 artists filed a lawsuit claiming that demolishing the popular mural space without notice violated the Visual Artists Rights Act. The landmark trial in U.S. District Court in Brooklyn would determine whether graffiti receives federal protection. After three weeks of hearing arguments from both sides, the judge ruled in favor of the artists and awarded them over $6.7 million in damages for their art being destroyed. The ruling is viewed as a precedent for protecting street art. More on this case is available on the Nonprofit Quarterly website.
REITs Want Clarity on Reporting Maintenance Fees from Tenants
Several office real estate investment trusts (“REITs”) are asking the Financial Accounting Standards Board (“FASB”) to reconsider its lease standard’s reporting requirement concerning maintenance fees that are calculated into a tenant’s rent. In a September 28 letter to the FASB, the REITs responded to the requirement under Accounting Standards Update No. 2016-02, Leases (Topic 842), which would make landlords account for service and maintenance fees separately from the real estate rental. REITs argued that separately accounting for such fees provides minimal benefit to investors and analysts. Kilroy Realty Corp Senior Vice President Merryl Werber highlighted the issue by saying there. Read More.
GASB Statement 85 Addresses Various Practice Issues
The Governmental Accounting Standards Board (“GASB”) has issued GASB Statement No. 85, Omnibus 2017, to address the following accounting and financial reporting matters: Merging a component unit when the main government is a business activity being disclosed in a single column for financial reporting purposes. Disclosing amounts that were previously reported as goodwill and negative goodwill. Categorizing real estate held by insurance companies. Assessing specific money market investments and contributing interest-earning investment contracts at amortized cost. Timing of the assessment of pension and other postemployment benefits (“OPEB”) liabilities, and associated expenditures identified in financial statements that are prepared with the. Read More.
FASB Makes Technical Corrections to Accounting Guidance
Amendments to key parts of U.S. GAAP were announced this week by the Financial Accounting Standards Board (“FASB”). Issued as Accounting Standards Update (“ASU”) No. 2016-19, Technical Corrections and Improvements, the amendments relate to several topics in the FASB Accounting Standards Codification. FASB Chairman Russell Golden says the changes are narrow in scope and should be easy for reporting entities to understand and implement. The following amendments in ASU No. 2016-19 impact all reporting entities: Subtopic 715-30, Compensation—Retirement Benefits—Defined Benefit Plans—Pension, and Subtopic 715-60, Compensation—Retirement Benefits—Defined Benefit Plans—Other Postretirement, and Topic 944, Financial Services—Insurance. ASU No. 2016-19 advises uniform use. Read More.
Topics: Accounting Standards Codification, Debt Restructuring, Defined Benefit Plans, Fair Value Measurement (Topic 820), FASB Technical Corrections, Financial Accounting Standards Board "FASB", Financial Instruments (Topic 825), Goodwill, Insurance (Topic 944), Intangibles, Liability Arrangements, Not-for-Profit Entities (Topic 958), Other Postretirement Employee Benefit Plans, Real Estate, Transfers & Servicing