FASB Discusses Projects on Leases and Simplifying the Classification of Debt
April 16, 2021
At its April 14, 2021, meeting, the FASB discussed its projects on the following topics:
- Leases (Topic 842) — lessors — leases with variable lease payments — The Board completed its redeliberations of its proposed Accounting Standards Update (ASU) Leases (Topic 842): Targeted Improvements and directed its staff to draft a final ASU for a vote by written ballot.
- Leases (Topic 842) — discount rate for lessees that are not public business entities — The FASB added a project to its technical agenda to “amend the accounting policy election for lessees that are not public business entities to use a risk-free rate as the discount rate.” The Board directed its staff to draft a proposed ASU for a vote by written ballot.
- Simplifying the balance sheet classification of debt — The Board discussed feedback on its proposed amendments in two proposed ASUs related to simplifying the classification of debt in a classified balance sheet and decided to remove this project from its technical agenda.