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FASB Updates Lease Accounting Standard for Lessors

December 11, 2018

The Financial Accounting Standards Board (FASB) issued an accounting standards update (PDF) aimed at reducing the costs for lessors in implementing and applying the new lease accounting standard. The narrow-scope update also clarifies a specific accounting requirement for lessors. FASB issued the leases standard, also known as Topic 842 in 2016, which would put operating leases on the balance sheets of many companies for the first time. The standards include principles for reporting transparent and economically neutral information about the assets and liabilities arising from leases.