July 21, 2011
FASB/IASB Confirm that Lessors of Investment Property Reported at Fair Value Would Be Scoped Out of Leases StandardAt a July 20, 2011 joint meeting, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) (the Boards) confirmed that lessors of investment property reported at fair value would be scoped
out of the proposed converged standard that addresses the accounting for leases. These lessors would account for leases as currently reported. Therefore, these lessors would not recognize a receivable for all payments to be received under
in-place leases separate from the investment property. The basis of this conclusion is that the fair value of the property includes the present value of payments to be received under in-place leases. In addition, these lessors would
continue to report lease revenue over the term of the lease on a straight-line basis.
ContactFor further information, please contact George Yungmann at gyungmann@nareit.com or Christopher Drula at cdrula@nareit.com. |
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