New lease accounting guidance proposed for federal entities

By Ken Tysiac

The Federal Accounting Standards Advisory Board (FASAB) and the Accounting and Auditing Policy Committee (AAPC) have proposed implementation guidance for federal-entity accounting standards and amendments to leases-related topics.

The AAPC, a permanent committee established and overseen by FASAB, proposed a Federal Financial Accounting Technical Release, Implementation Guidance for Leases. FASAB, meanwhile, is proposing a Statement of Federal Financial Accounting Standards (SFFAS), Omnibus Amendments to Leases-Related Topics.

The proposals are contained in a joint exposure draft. Comments can be emailed to fasab@fasab.gov through Feb. 5.

The proposal for the technical release contains 99 implementation questions and answers and proposes guidance for applying the requirements of SFFAS 54, Leases. The proposals for the technical release were created under the assumption that the omnibus amendment proposals become final.

The omnibus proposal would amend SFFAS 54 to enhance the clarity of the standard, rescind certain disclosure requirements, and provide minor technical corrections.

“These proposals are intended to clarify and explain the application of SFFAS 54 and the many nuances and complexities that we expected to arise under the statement,” FASAB Chair George Scott said in a news release. “By engaging in extensive research and outreach, and through the efforts of a dedicated task force, the goal has been to facilitate the ongoing leases implementation activities across the federal community.”

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.

Where to find January’s flipbook issue

Starting this month, all Association magazines — the Journal of Accountancy, The Tax Adviser, and FM magazine (coming in February) — are completely digital. Read more about the change and get tips on how to access the new flipbook digital issues.

SPONSORED REPORT

Get your clients ready for tax season

Upon its enactment in March, the American Rescue Plan Act (ARPA) introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022.