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FASAB issues statement to clarify lease terms

By Kevin Brewer

Please note: This item is from our archives and was published in 2023. It is provided for historical reference. The content may be out of date and links may no longer function.

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The Federal Accounting Standards Advisory Board (FASAB) on Friday issued Statement of Federal Financial Accounting Standards (SFFAS) 61, Omnibus Amendments 2023, Leases-Related Topics II.

The statement is intended to provide targeted technical clarifications to further facilitate implementation of SFFAS 54, Leases. The omnibus amendments clarify:

  • The treatment of purchase options and defaults on payments for purposes of (1) determining the lease term and (2) assessing contracts or agreements that transfer ownership for options to terminate;
  • The discounting of lease liabilities and receivables; and
  • The applicability of sale-leasebacks requirements under paragraphs 89–92 to intragovernmental sale-leasebacks and the applicable disclosure.

The amended SFFAS 54 becomes effective for reporting periods beginning after Sept. 30, 2023, according to a news release.

— To comment on this article or to suggest an idea for another article, contact Kevin Brewer at Kevin.Brewer@aicpa-cima.com.