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FASB proposes ASU to address lessor implementation issues

  • FASB document Image

Dec 19, 2018

The FASB has issued a proposed Accounting Standards Update (ASU), “Codification Improvements for Lessors.”

The proposed ASU would make the following improvements:

  • “[Align] the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842, with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply.”
  • Require lessors within the scope of ASC 942, Financial Services — Depository and Lending, to present all “principal payments received under leases” within investing activities.

Comments on the proposed ASU are due by January 15, 2019.

For more information, see Deloitte's related journal entry as well as the press release and proposed ASU on the FASB’s Web site.

On December 20, 2018, the FASB issued for comment Proposed Taxonomy Improvements for Leases (Topic 842): Codification Improvements for Lessors. Comments on the proposed taxonomy improvements are due by January 15, 2019.

Correction list for hyphenation

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