FASAB Issues Statement To Clarify Lease Terms
The Federal Accounting Standards Advisory Board (FASAB) recently issued Statement of Federal Financial Accounting Standards (SFFAS) 61, Omnibus Amendments 2023, Leases-Related Topics II.
The FASAB said that the Statement is intended to provide targeted technical clarifications to further facilitate implementation of SFFAS 54, Leases.
The omnibus amendments clarify:
- the treatment of purchase options and defaults on payments for purposes of (a) determining the lease term and (b) assessing contracts or agreements that transfer ownership for options to terminate;
- the discounting of lease liabilities and receivables; and
- the applicability of sale-leasebacks requirements under paragraphs 89-92 to intragovernmental sale-leasebacks and the applicable disclosure.
SFFAS 54, as amended, becomes effective for reporting periods beginning after Sept. 30, 2023.