FASB Proposes Amendments to Guidance on Common-Control Lease Arrangements
FASB Proposes Amendments to Guidance on Common-Control Lease
November 30, 2022
The FASB has issued a proposed Accounting Standards Update (ASU),
Leases (Topic 842):Common Control Arrangements, which would amend
certain provisions of ASC 842 that apply to arrangements between related parties
under common control. Specifically, the proposal would:
Offer private companies, as well as not-for-profit entities that are not
conduit bond obligors, a practical expedient that gives such entities the
option of using the written terms and conditions of a common-control
arrangement when determining (1) whether a lease exists and (2) the
subsequent accounting for the lease, including the lease’s
Amend the accounting for leasehold improvements in common-control
arrangements for all entities.
Comments on the proposed ASU are due by January 16, 2023. For more
information, see the press release on the FASB’s Web site.