Private entities are permitted to use any written terms and conditions between the parties – without regard to their legal enforceability – to identify, classify and account for common control leases. In addition, all lessees (public or private), in general, amortize leasehold improvements related to a common control lease over their ‘useful life’ to the common control group – regardless of the ASC 842 ‘lease term’ – as long as they continue to control the use of the underlying leased asset.
Effective dates |
Issue 1 (private entities only) |
Issue 2 (all entities) |
Annual periods – Fiscal years beginning after |
December 15, 2023 |
December 15, 2023 |
Interim periods – In fiscal years beginning after |
December 15, 2023 |
December 15, 2023 |
Early adoption allowed? |
Yes |
Yes |
Identifying terms and conditions (applicable to private entities only)
Leasehold improvements (applicable to all entities)
Transition
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