PCC Flash Report - March 2014

March 2014

On March 20, 2014, the FASB issued a final ASU to allow private companies to opt out of applying the variable interest entity (VIE) consolidation guidance to certain common control leasing arrangements.1 Therefore, a private company lessee that meets the eligibility criteria and elects not to apply the VIE guidance would account for its lease under Topic 840 as either an operating or capital lease, as appropriate. Certain incremental disclosures would also be required. Early adoption is available for 2013 year-end financial statements that are not yet available for issuance.