The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-01 Leases (Topic 842): Codification Improvements addressing two implementation issues lessors have encountered when implementing the board's new lease accounting standard.
The ASU aligns the new guidance with existing guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842, Leases. Among other things, it also exempts lessees and lessors from having to provide certain interim disclosures in the fiscal year the company adopts the new lease accounting standard.
“The changes will help ensure a smoother transition to the standard without affecting the quality of information provided to investors and other financial statement users,” stated FASB Chairman Russell Golden.