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FASB clarifies the application of new leasing standard to land easements

  • FASB document Image

Jan 25, 2018

The FASB has issued Accounting Standards Update (ASU) No. 2018-01, “Land Easement Practical Expedient for Transition to Topic 842.”

The ASU provides “an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under Topic 840.” In addition, the ASU clarifies that a “new or modified land easement should be assessed prospectively under Topic 842 to determine whether it is or contains a lease.”

For more information, see the ASU and press release on the FASB’s Web site.

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