On November 30th, the Financial Accounting Standards Board (FASB) released for comment the proposed GAAP taxonomy improvements for the proposed
Accounting Standards Update (ASU), which is aimed at improving accounting guidance for lease arrangements between entities under common control.
During the FASB’s post-implementation review (PIR) of Accounting Standards Update No. 2016-02, Leases (Topic 842), stakeholders shared concerns about applying Topic 842 to related party arrangements between entities under common control. The stockholders’ concerns focused mainly on the following areas:
- written terms and conditions that should be considered when determining whether a lease exists and, if so, the classification and accounting for the lease
- accounting for leasehold improvements associated with leases between entities (including public companies) under common control.
Stakeholders and interested parties are invited to review and submit feedback on the proposed ASU by emailing comments to xbrled@fasb.org by January 16, 2023.
For more information and to view the proposed ASU, visit www.fasb.org.
Source:
FASB Seeks Input on Proposed Improvements to Leases Guidance on Relate Party Arrangements Between Entities Under Common Control (fasb.org)
FASB Staff Issues Proposed GAAP Taxonomy Improvements for a Proposed Accounting Standards Update—Leases (Topic 842): Common Control Arrangements (xbrl.us)
