FASB Issues Proposal to Exclude Operating Lease Receivables from the Scope of the New Credit Losses Standard
On Aug. 20, the Financial Accounting Standards Board (FASB) issued a proposal that would clarify that operating lease receivables would be outside the scope of the new credit losses standard . Nareit raised this issue in its May 31, 2013 submission to the FASB. Nareit plans to draft a comment letter in support of the proposal. If you have any comments or questions, please do not hesitate to contact Christopher Drula at cdrula@nareit.com. Comments are due to the FASB by Sept. 19.
The effective date for the proposal would be consistent with the effective date of the new credit losses standard. For public companies, the new credit losses standard is effective for fiscal years beginning after Dec. 15, 2019, and for interim periods within those fiscal years. Thus, the new credit losses standard be effective beginning on Jan. 1, 2020 for publicly traded REITs. Public companies can early adopt the new credit losses standard in fiscal years beginning after Dec. 15, 2018, and interim periods within those fiscal years.