PwC filed a response letter expressing support for the FASB’s proposal to make narrow-scope improvements to how lessors adopt the new leases standard. The proposed amendments provide a new accounting policy election that will permit lessors to not evaluate whether certain sales taxes and other similar taxes are costs of the lessor or costs of the lessee. It also requires lessors to exclude certain costs paid directly by lessees to third parties on behalf of the lessor when those costs are not readily determinable by the lessor. The FASB’s proposal also clarifies the guidance for the recognition of variable payments for contracts with lease and nonlease components.
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