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 firstname.lastname@example.org by January 16, 2023.