PwC submitted comments on the GASB's preliminary views on leases accounting. We support the GASB’s continuing effort to enhance the usefulness of the financial reporting model for state and local governmental entities.
In the past, we have encouraged the GASB and FASB to consider whether opportunities for convergence exist in areas that are not uniquely governmental. In the area of leasing, the GASB and FASB standards are largely converged at present, and we believe continued convergence would be beneficial to financial statement users. We believe that any differences in lease accounting within U.S. GAAP (as defined by the GASB and the FASB) should be limited to specific distinctions in the nature of the leasing transactions entered into by governmental entities in relation to those transactions entered into by business entities.
There are four specific areas where we believe maintaining consistency between governmental and private sector entities are especially important: definition of a lease, lessee accounting, lessor accounting, and sale-leasebacks.
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