By Ken Tysiac November 29, 2017
FASB decided Wednesday to make simplifications designed to reduce costs and decrease the challenges that financial statement preparers are facing as they implement the board's new lease accounting standard.
The board decided to issue an Accounting Standard Update (ASU) that will:
- Provide an optional practical expedient for transition. Organizations that elect the practical expedient would not be required to consider their accounting for existing land easements that are not currently accounted for under FASB ASC Topic 840.
- Clarify that new or modified land easements should be evaluated under Topic 842 (the leases standard) once effective.
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