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Appendix D: Summary of significant changes
□ LG 6.3.5.3 was updated to expand interpretive guidance related to sale-leaseback transactions
whereby the seller-lessee is provided with a right of first offer.
LG 8, Other topics
□ LG 8.2.1.1 was updated to clarify the accounting for the head lessor when the intermediate lessor
enters into a sublease.
□ Figure 8-2 was updated to clarify the guidance for accounting by an intermediate lessor when it
enters into a sublease.
□ LG 8.4.3.2 was updated to clarify the accounting for purchases of guaranteed residual assets.
□ LG 8.7 was added to address the accounting for a sales-type lease for a failed sale with a
repurchase option.
LG 9, Presentation and disclosure
□ LG 9.2.2.1 was updated to clarify the income statement presentation of interest on the lease
liability and a discussion on the presentation of the amortization of the right-of-use asset was
added. Additionally, interpretive guidance was added to address where variable lease payments
made for a finance lease should be presented in the income statement.
□ LG 9.2.3.3 was updated to include interpretative guidance related to the disclosure of noncash
transactions related to adjustments to the lease liability or right-of-use assets.
□ LG 9.2.4 was updated to include an example of when short-term lease expense does not
reasonably reflect on-going short-term lease commitments.
□ LG 9.3.2 was updated to include a discussion of an exposure draft related to lessor income
statement presentation of taxes that are collected by the lessor from a lessee and other lessor costs
paid directly by the lessee to a third party. This section was also updated to reflect new guidance
related to a practical expedient for lessors to combine lease and nonlease components. Finally, the
section was updated to included interpretive guidance related to the income statement
presentation for “free” embedded leases.
□ LG 9.3.2.1 was updated for interpretive guidance to address how variable lease payments related
to sales-type and direct financing leases should be presented in the income statement.
□ LG 9.3.2.2 was updated to clarifying the income statement presentation for operating leases.
□ LG 9.3.4.2 was updated to reflect new guidance related to a practical expedient for lessors to
combine lease and nonlease components.
LG 10, Effective date and transition
□ LG 10 was reorganized and updated to reflect interpretive guidance regarding transition and the
following amendments to the guidance in ASC 842:
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