TSCPA News

FASB Adds Transition Option and Practical Expedient for Lessors to New Leases Standard

July 31, 2018

The FASB added a transition option to the new leases standard that allows entities to not apply the new guidance in the comparative periods they present in their financial statements in the year of adoption. The FASB also provided a practical expedient that gives lessors an option to combine non-lease and associated lease components when certain criteria are met and requires a lessor to account for the combined component in accordance with the new revenue standard if the associated non-lease components are the predominant component. 

 

You can read more in the latest FASB Accounting Standards Update No. 2018-11.