FASB voted at a meeting Wednesday, Feb. 15, to move toward finalizing two narrowly targeted updates to its lease accounting standards.
The changes to current standards center on leases between entities under common control, such as a parent and a subsidiary or affiliates.
The first update would provide a “practical expedient” or a kind of workaround for determining if a lease arrangement exists.
The second update provides guidance for amortizing leasehold improvements, according to FASB materials. Learn more.