At its meeting on October 31, 2018, the FASB concluded deliberations on its proposed Accounting Standards Update (ASU)1 related to the narrow-scope improvements for lessors under ASC 842.2 This journal entry includes a summary of the tentative decisions reached and related discussion at the meeting for the following issues:3
- Sales taxes and other similar taxes collected from lessees.
- Lessee-paid and lessee-reimbursed costs.
- Recognition of variable payments for contracts with lease and nonlease components.
- Transition and effective date of the final ASU.