Lease accounting requirements for federal agencies were amended and clarified Thursday through the issuance of guidance by the Federal Accounting Standards Advisory Board (FASAB).
FASAB issued Statement of Federal Financial Accounting Standards (SFFAS) 60, Omnibus Amendments 2021: Leases-Related Topics, as well as Federal Financial Accounting Technical Release (TR) 20, Implementation Guidance for Leases.
SFFAS 60 amends SFFAS 54, Leases, to enhance clarity, rescind certain disclosure requirements, and provide minor technical corrections. TR 20, which includes 96 implementation questions and answers, demonstrates how to apply the requirements of SFFAS 54 in a variety of contexts. TR 20 also provides conforming amendments to existing TRs related to leases.
"The board engaged extensively with the federal financial management community to identify numerous omnibus amendment and implementation guidance candidates, and proposals to address those candidates," FASAB Chair George Scott said in a news release.
SFFAS 54, as amended, takes effect for reporting periods beginning after Sept. 30, 2023. FASAB will continue to research, identify, and address other SFFAS 54 implementation issues through subsequent pronouncements.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA's editorial director.