At its April 7, 2015 meeting, the Financial Accounting Standards Board (“the Board”) continued the redeliberations on its Lease Accounting Project, specifically focusing on matters relating to lessees that are not public business entities (“PBEs”). The Board had previously determined that entities that are not PBEs could make an accounting election to use a risk – free rate for the initial and subsequent discounted measurement of lease liabilities. This tentative decision was reaffirmed.
Additionally, the Board tentatively concluded that there should not be any alternative recognition, measurement, disclosure, presentation or transition guidance for entities that are not PBEs. Therefore, nonpublic business entities will not get any relief from the requirements provided in the new standard.
The Board staff has indicated that they have begun drafting the final standard based upon the tentative decisions reached by the Board. No decision has been reached to date as to the effective date of the new standard.