FASB Issues Targeted Improvements to Leases
Standard
Norwalk, CT, July 30, 2018—The Financial
Accounting Standards Board (FASB) today issued an Accounting Standards Update (ASU)
that reduces costs and eases implementation of the leases standard for financial
statement preparers.
"The targeted improvements in the ASU address
areas our stakeholders identified as sources of unnecessary cost or complexity
in the leases standard," stated FASB Chairman Russell
G. Golden. "They represent the FASB's commitment to proactively
address implementation issues raised by our stakeholders to ensure a successful
transition to the new standard without compromising the quality of information
provided to investors."
The ASU simplifies transition requirements
and, for lessors, provides a practical expedient for the separation of nonlease
components from lease components.
Specifically, the ASU provides:
- An option to apply the transition provisions of the new standard at its
adoption date instead of at the earliest comparative period presented in its
financial statements, and
- A practical expedient that permits lessors to not separate nonlease
components from the associated lease component if certain conditions are
met.
The ASU is available at http://www.fasb.org/.