Codification Improvements to FASB Leases Standard Proposed
The Financial Accounting Standards Board has announced proposed amendments to its leases standard concerning possible lessor implementation issues related to Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The proposed changes would align the FASB’s guidance for fair value of the underlying asset by lessors not considered manufacturers or dealers under Topic 842, with existing guidance. Thus, the fair value of the underlying asset at the start of the lease is its cost, and it would incorporate any applicable volume or trade discounts. If significant time has lapsed since the acquisition of the underlying asset and when the lease starts, however,. Read More.
FASB Issues Narrow Improvements to Leases Standard
To cut costs lessors have when implementing its leases standard, the Financial Accounting Standards Board (“FASB”) has issued Accounting Standards Update (“ASU”) No. 2018-20, Leases (Topic 842)-Narrow-Scope Improvements for Lessors. The standard addresses three issues lessors face when applying ASU No. 2016-02, Leases (Topic 842): Taxes collected from lessees:ASU No. 2018-20 gives lessors the option to review whether particular sales taxes and other taxes are lessor or lessee expenses. Lessors can now account for such expenses as lessee costs and omit the costs as lease revenue with a related expense. Certain lessor costs lessees directly pay: ASU No. 2018-20 requires. Read More.
FASB Tweaks Guidance for Leases
In July, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that includes targeted improvements to its leases standard. ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, introduces a transition model for entities and offers a practical expedient to lessors concerning separation of lease and non-lease components. The new standard also provides entities the option to apply the transition requirements at the guidance’s adoption date rather than the earliest comparative period disclosed in financial statements. For entities that have not adopted Topic 842, the effective date of ASU No. 2018-11 is the same as the effective date. Read More.
GASB Seeks Comments on Conduit Debt Obligations Proposal
There is still time to submit comments regarding the Governmental Accounting Standards Board’s (“GASB”) proposed Statement to streamline how government issuers disclose conduit debt obligations. In the Exposure Draft, Conduit Debt Obligations, the GASB offers a single method for reporting such obligations and eliminating diversity in practice. The proposal also offers accounting guidance when there are additional commitments given by government issuers and addresses a topic not addressed by GASB 87, Leases. Comments on the proposal are due Friday, November 2. For more on this Exposure Draft, read the press release .
FASB Issues Proposed Changes to Lease Accounting Standard
A recently proposed update to the Financial Accounting Standards Board’s (“FASB”) lease accounting standard aims to alleviate the work lessors will have to perform when applying Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). Proposed ASU No. 2018-260, Leases (Topic 842): Narrow-Scope Improvements for Lessors, offers lessors new guidance on the breakout of sales and other similar taxes from their costs, and the recognition of certain expenses and variable payments for lease and non-lease portions of a contract. Landlords and companies that lease equipment to their customers informed the FASB that the amount of work and analysis required by ASU No.. Read More.
GASB Offers Implementation Guidance on Leases Standard
The Governmental Accounting Standards Board’s (“GASB”) leases standard goes into effect late next year, but the board urges state and local governments to start the implementation planning process now. Issued last June, GASB Statement No. 87, Leases, significantly changes how governments report leases on their financial statements. To assist governments, the GASB has published implementation guidance concerning GASB Statement No. 87. Read all about it at GASB.org.