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Highlights of the FASB’s November 29 meeting

  • FASB meeting Image

Dec 01, 2017

At its November 29, 2017, meeting, the FASB discussed (1) a practical expedient for land easements; (2) implementation issues related to applying the guidance in ASC 842, "Leases"; and (3) the status of implementation activities related to applying the guidance in ASC 606, "Revenue From Contracts With Customers."

Practical expedient for land easements

The Board discussed the feedback on its recent proposed ASU on a practical expedient for land easements and decided to proceed with issuing a final ASU after the language of the standard is modified to clarify that the practical expedient applies to all expired or existing land easements that were not accounted for under ASC 840, Leases.

Leasing implementation issues

The Board discussed various ASC 842 implementation issues raised by stakeholders and decided to amend the following two aspects of the guidance:

  • Transition — Entities would be given the option of applying ASC 842 as of the effective date instead of the earliest comparative period, which would result in a cumulative-effect adjustment to retained earnings in the period of adoption.
  • Separating components of a contract — If certain conditions are met, lessors could use a practical expedient to account for nonlease components and related lease components as a single lease component instead of accounting for them separately.

For more information, see the media advisory on the FASB’s Web site.

Revenue implementation activities

The Board discussed the status of implementation activities related to FASB Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers.

For more information, see the tentative board decisions on the FASB’s Web site

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.