Filed under: Leases
KPMG reports on new SEC staff guidance on updating the foreign exchange rate used to remeasure an ROU asset into the lessee’s functional currency. The SEC staff has provided guidance on whether and how a lessee should update the exchange rate used to remeasure an ROU asset into the lessee’s functional currency when the lease is denominated in a currency other than the functional currency.
Lessees that enter into leases denominated in a foreign currency that is not their functional currency.
Lessees may elect either of the following two approaches to updating the exchange rate used to remeasure an ROU asset into the lessee’s functional currency: