- FASB Considers Adding Fair Value Reporting of Investment Property to its Agenda
- FASB/IASB Reach Tentative Decisions on Lease Accounting
- SEC Issues a Compliance and Disclosure Interpretation Referring to FFO
January 29, 2010
FASB Considers Adding Fair Value Reporting of Investment Property to its AgendaAs a result of a tentative decision on lease accounting reached by the International Accounting Standards Board (IASB) on January 20, 2010, the Financial Accounting Standards Board (FASB) instructed its staff to prepare an agenda
proposal for the potential adoption of a standard that would provide the option or requirement to report investment property at fair value under U.S. Generally Accepted Accounting Principles (GAAP).
FASB/IASB Reach Tentative Decisions on Lease AccountingIn connection with the FASB/IASB discussions regarding the lease accounting project mentioned above, the Boards addressed the discount rates that would be applied to future rental amounts in measuring the lessee's obligation and
lessor's receivable subsequent to initial recognition. At initial recognition, the present value of the lease payments would be discounted using: i) the lessee's incremental borrowing rate to measure the lessee's obligation; and, ii) the
interest rate implicit in the lease to measure the lessor's receivable. The Boards agreed that the discount rates for lessees and lessors would not be revised for subsequent changes in the expected lease term and contingent rental payable
(provided that the rentals are not contingent upon variable reference interest rates).
SEC Issues a Compliance and Disclosure Interpretation Referring to FFOOn January 11, 2010, the Securities and Exchange Commission (SEC or the Commission) issued Compliance & Disclosure Interpretations (C&DIs) that focus on reporting non-GAAP measures generally and Funds From Operations (FFO) specifically.
To access the full C&DI, click
HERE.
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Highlights
Contact
For further information, please contact
George Yungmann at gyungmann@nareit.com or
Sally Glenn at sglenn@nareit.com.
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