As entities prepare to adopt ASC 842,1 lessors have raised certain implementation concerns. To assist lessors with implementation of the new leasing standard without compromising information provided to financial statement users, the Board issued ASU 2018-202 on December 10, 2018. The ASU includes amendments related to the following items:
- Item 1 — Sales taxes and other similar taxes collected from lessees.
- Item 2 — Lessor costs paid directly by a lessee.
- Item 3 — Recognition of variable payments for contracts with lease and nonlease components.