At its February 15, 2023, meeting, the FASB redeliberated its 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 Board made tentative decisions regarding the following:
A practical expedient for private companies (as well as not-for-profit
entities that are not conduit bond obligors and certain employee benefit
plans) that would give 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 classification.
The accounting for leasehold improvements in common-control
The effective date, as well as the expected costs and benefits, of the