The Financial Accounting Standards Board (FASB) issued a proposed accounting standards update (ASU) intended to reduce costs and ease implementation of the leases standard for financial statement preparers.
“The proposed ASU is aimed at reducing unnecessary costs around implementation of the new Leases standard without compromising the ultimate quality of information provided to investors,” stated FASB Chairman Russell G. Golden. “It’s part of our ongoing effort to proactively address implementation issues raised by our stakeholders to ensure a successful transition to the new standard.”
The proposed ASU would simplify transition requirements and, for lessors, provide a practical expedient for the separation of nonlease components from lease components. Specifically, the amendments would:
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