FASB on Monday, March 28, released an amendment to an Accounting Standards Update designed to improve leases guidance on related party arrangements between entities under common control.
The board released ASU No. 2016-02, Leases (Topic 842), after a post-implementation review of the ASU revealed stakeholders' concerns about successfully applying the topic.
The amended ASU addresses two issues: terms and conditions, and accounting for leasehold improvements. The ASY goes into effect for fiscal years beginning after Dec. 15, including interim periods within those years. Read more.