On October 31, the FASB tentatively approved the following amendments designed to make lessors adoption of the new leases standard easier:
These amendments will be applicable to all leases that exist as of the effective date and all new leases entered into on or after the effective date of the new leases standard.
The effective date for these amendments will be the same as the effective date for the new leases standard. Entities already applying the new standard may apply these amendments (1) as of the entity’s original effective date of the new leases standard, (2) in the first reporting period ending after the issuance of the amendments, or (3) in the first reporting period following the issuance of the amendments. Either retrospective or prospective adoption is permitted for such entities.
These amendments are expected to save lessors time and cost and reduce complexity.
We expect the final guidance to be issued in mid-December, 2018.
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