The Financial Accounting Standards Board (FASB) has issued a proposed accounting standards update (ASU) containing a number of targeted improvements intended to reduce costs and ease implementation of the new leases standard.
Introduced in 2016, the standard brings almost all leases on balance sheet and has resulted in substantial changes for many organizations that have large numbers of leases across multiple asset types.
The proposed ASU would simplify transition requirements and, for lessors, provide a practical expedient for the separation of non-lease components from lease components.
Stakeholders are encouraged to review and provide comment on the proposed improvements by February 5, 2018.
Visit www.fasb.org for details.