FASB works to ease lessor accounting challenges

FASB works to ease lessor accounting challenges

FASB proposed and issued Accounting Standards Updates that would address challenges that lessors may encounter as they implement the board’s new lease accounting standard.

The board proposed an update that would align the guidance for fair value of the underlying asset with existing guidance for lessors that are not manufacturers or dealers in FASB ASC Topic 842, Leases. As a result, the fair value of the underlying asset at lease commencement would be its cost, reflecting any volume or trade discounts that may apply.

However, if there has been a significant lapse of time between the acquisition of the underlying asset and the commencement of the lease, the definition of fair value in Topic 820, Fair Value Measurement, would be applied under the proposal.

The proposal also would require lessors within the scope of Topic 942, Financial Services — Depository and Lending, to present all “principal payments received under leases” within investing activities.

FASB also issued an Accounting Standards Update (ASU) that clarifies how to apply the new leases standard when accounting for sales taxes, certain lessor costs, and certain requirements related to variable payments in contracts.

ASU No. 201820, Leases (Topic 842): Narrow-Scope Improvements for Lessors, should reduce lessors’ implementation and ongoing costs related to the new leases standard, according to a FASB news release. The standard:

Research & References of FASB works to ease lessor accounting challenges|A&C Accounting And Tax Services
Source

68 thoughts on “FASB works to ease lessor accounting challenges

  1. Pingback: cialis on line
  2. Pingback: gnc ed pills
  3. Pingback: online ed pills
  4. Pingback: sale cialis
  5. Pingback: online pharmacy
  6. Pingback: online casino usa
  7. Pingback: buy cialis online
  8. Pingback: cash payday
  9. Pingback: cialis 5 mg
  10. Pingback: cialis to buy
  11. Pingback: casinos online
  12. Pingback: rivers casino
  13. Pingback: buy cialis
  14. Pingback: viagra pills
  15. Pingback: www.jueriy.com
  16. Pingback: buy viagra cheaper
  17. Pingback: cialis generico
  18. Pingback: viagra cost
  19. Pingback: sildenafil
  20. Pingback: viagra cheap
  21. Pingback: RxTrustPharm
  22. Pingback: rxtrustpharm.com
  23. Pingback: cialis for sale
  24. Pingback: buy cialis india
  25. Pingback: rxtrust pharm
  26. Pingback: sildenafil 20 mg
  27. Pingback: ceftin nz
  28. Pingback: casino games
  29. Pingback: insurance rates
  30. Pingback: viagrs
  31. Pingback: usa quick loans
  32. Pingback: cbd oil for sale
  33. Pingback: bill gates cbd oil
  34. Pingback: french homework
  35. Pingback: buy cheap essays

Leave a Reply