Appendix I — Roadmap Updates for 2023 | DART – Deloitte Accounting Research Tool

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Appendix I — Roadmap Updates for 2023

The tables below summarize the substantive changes made since the 2022 edition of this Roadmap as a result of FASB standard-setting activities, discussions regarding implementation matters with the FASB and SEC staff, and other practice developments.

New Content

Section	Title	Description
2.3.3	ASC 810 — Consolidation	Discusses the interaction between ASC 842 and ASC 810.
5.2.4.7	Terminal Rental Adjustment Clauses	Addresses considerations related to a TRAC in a lease, specifically when it is reasonably possible that the lessee would, as a result of the TRAC, make a significant payment to the lessor at the end of the lease term.
9.3.9.4	Sale of Future Operating Lease Payments	Discusses accounting in situations in which a lessor obtains proceeds from the sale of future operating lease payments that do not meet the definition of a receivable.
9.4.5	Accounting for Short Payments by Lessee	Addresses accounting considerations for lessors in situations in which a lessee makes rent payments that are less than the amount contractually owed under the lease contract.
10.2.3.2.2	Leaseback of Assets by an Acquiree After a Business Combination	Notes that when a seller leases back an asset that was acquired by the acquirer in a business combination accounted for under ASC 805, the transaction is outside the scope of the sale-and-leaseback guidance in ASC 842-40.
17.3.1.10	ASU 2023-01 on Common-Control Arrangements	Outlines the provisions of the FASB’s ASU 2023-01 on related-party leases in arrangements between entities under common control.

Amended Content

Section	Title	Description
2.3.2.1	Derivatives Embedded in a Lease	Example 2-5 updated to reflect the change from the LIBOR interest rate to the SOFR interest rate.
3.4.1.1.2	Economic Benefits From the Use of the Asset Versus Ownership of the Asset (e.g., Tax Attributes)	Connecting the Dots added to address transferable tax credit considerations in the evaluation of transferable tax credits as economic benefits from using the asset.
4.3.3.1	Lessees	Clarifies that the lessee should consider whether its ability to use or derive benefits from the nonlease component is interrelated with that for the lease component, and vice versa, when electing the practical expedient to combine lease and nonlease components.
5.1	Commencement Date of a Lease	Discussion added of instances in which a lessee controls an underlying asset before the commencement date of the lease. Further, Changing Lanes added to clarify the differences between ASC 840 and ASC 842 with respect to the date an entity would use (inception date versus commencement date) when classifying the lease and when to determine the inputs used to initially measure the lease.
5.2.2	Periods Covered by Options (Reasonably Certain)	Clarifies that lessees and lessors may reach different conclusions about whether it is reasonably certain that a lessee will exercise a renewal or purchase option or not exercise a termination option. Further, discussion added regarding considering the length of time between the commencement date of the lease and the date of exercise of the option in the evaluation of whether a lessee will be reasonably certain to exercise an option or renew or terminate a lease.
5.2.2.2	Asset-Based Factors	Includes “specialized nature of the asset” and “costs associated with lost production” as asset-based factors that depend on specific characteristics of the underlying asset.
8.3.5.2	Related-Party Leases	Reflects the issuance of the FASB’s new standard ASU 2023-01, which amends certain provisions of ASC 842 that apply to arrangements between related parties under common control.
8.3.5.2.1	Leases Between Parties Under Common Control	Reflects the issuance of ASU 2023-01 and revises the Changing Lanes to discuss the legally enforceable terms versus the substance of common-control arrangements.
8.4.4.2.1	Unit of Account for Impairment Testing — Asset Group/Lease Component Considerations Related to Subleasing a Portion of a Larger ROU Asset	Clarifies Connecting the Dots to discuss the accounting for ASC 420 liabilities when a lessee elects the practical expedient offered in ASC 842-10-15-37, in addition to the accounting for ASC 420 liabilities when a lessee does not elect the practical expedient.
8.8.3.1	Amortization of Leasehold Improvements	Reflects the issuance of ASU 2023-01.
9.3.4	Lease Modification	Revises Connecting the Dots to discuss the accounting for rent concessions that do not qualify for the COVID-19 relief.
9.3.5	Lease Termination	Clarifies that if a lease termination occurs on a future date, the change represents a lease modification rather than a termination for accounting purposes.
9.3.9.1	Recognition, Initial Measurement, and Subsequent Measurement	Adds discussion to Connecting the Dots regarding a lessor’s accounting considerations in situations in which the lessee’s ability to derive its intended economic benefits from the use of a leased asset may be significantly curtailed.
9.3.9.2	Collectibility	Clarifies that a lessor is required to continually evaluate whether it is probable that future operating lease payments will be collected.
10.3.3	Repurchase Options	Explains that an entity must use judgment when assessing whether there are alternative assets that are substantially the same as the transferred asset and readily available in the marketplace under ASC 842-40-25-3(b) for a sale-and-leaseback transaction. In addition, guidance is included on factors for an entity to consider when making this assessment.
10.4.1	Transfer of the Asset Is a Sale	Indicates that if a sale-and-leaseback transaction qualifies as a sale but the transaction price is not at market, profit recognition would include an “adjustment” to arrive at market-based terms. Such adjustments are further discussed in Section 10.4.1.1.
10.4.1.2	Sale Is Not at Fair Value	Notes that any adjustment of lease payments that results from off-market terms must be considered in the classification assessment of the lease component.
11.3.2.3	Lessee Controls the Underlying Land	Incorporates discussion of how renewal options are considered in the determination of whether a lessee controls the underlying land during construction in the context of ASC 842-40.
13.2	Related-Party Leases	Reflects the issuance of ASU 2023-01.
Appendix B	Differences Between U.S. GAAP and IFRS Accounting Standards	Reflects the issuance of ASU 2023-01.
Appendix C	Differences Between ASC 840 and ASC 842	Reflects the issuance of ASU 2023-01.
D.4.1	Entity Elections and Transition Reliefs	Reflects the new practical expedient available to private companies, as well as not-for-profit entities that are not conduit bond obligors, after the adoption of ASU 2023-01.

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