The FASB has proposed to address longstanding questions in applying ASC 842 to leases between entities under common control. Mind the GAAP and Wipfli, LLP wrote a letter to the FASB expressing our concerns with the proposal.
Thompson Reuters included thoughts from Scott Ehrlich, President of Mind the GAAP, in an article regarding a FASB proposal to amend ASC 842 (Leases) in three areas. Subsequently, the FASB has decided to issue a formal Accounting Standards Update on only one of the three proposals.
Mind the GAAP and Wipfli recently wrote a short letter to the FASB highlighting a potential disclosure quirk affecting private companies adopting ASC 842, Leases, on a cumulative-effect basis. The firms have asked the FASB to issue a narrow scope amendment to address the issue.
Discussions at a recent IFRS Interpretations Committee highlight that international and U.S. practitioners may be interpreting new U.S. GAAP and IFRS leasing guidelines differently.