tag:blogger.com,1999:blog-7390689584378451863.post5162187956202438715..comments2023-05-08T08:09:25.972-04:00Comments on Lease Accounting blog: FASB: New leases standard implementation in 2019 Kelvin Smithhttp://www.blogger.com/profile/00766330254970012724noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7390689584378451863.post-89628560228350104202015-11-19T12:11:37.190-05:002015-11-19T12:11:37.190-05:00If the leaseback is operating (which your referenc...If the leaseback is operating (which your reference to "lease expense" suggests), then "The seller-lessee should recognize any deferred gain or loss not resulting from off-market terms as a cumulative-effect adjustment to equity at the later of the date of initial application and the date of sale." (Taken from the FASB project update page.) If it's capital, the deferred gain or loss continues to be amortized with no change. <br /><br />It doesn't wipe out the economic benefit; it just means that it's all recognized up front, rather than parceled out over time.Kelvin Smithhttps://www.blogger.com/profile/00766330254970012724noreply@blogger.comtag:blogger.com,1999:blog-7390689584378451863.post-13139406372133555752015-11-18T16:13:24.362-05:002015-11-18T16:13:24.362-05:00Blog is great. Thx for the clarity on this compli...Blog is great. Thx for the clarity on this complicated topic. For those lessees who entered into a sale leaseback and have gain that is being amortized over lease term, what happens at transition? I think I read that the unamortized gain goes to equity. Doesn't this wipe out some of economic benefit of the SLB to begin with -- the annual gain that offsets the lease expense? Is there a way to keep this benefit as a lessee? J@QGhttps://www.blogger.com/profile/09706282153048490588noreply@blogger.comtag:blogger.com,1999:blog-7390689584378451863.post-6522532210771477042015-11-18T16:13:03.252-05:002015-11-18T16:13:03.252-05:00Blog is great. Thx for the clarity on this compli...Blog is great. Thx for the clarity on this complicated topic. For those lessees who entered into a sale leaseback and have gain that is being amortized over lease term, what happens at transition? I think I read that the unamortized gain goes to equity. Doesn't this wipe out some of economic benefit of the SLB to begin with -- the annual gain that offsets the lease expense? Is there a way to keep this benefit as a lessee? J@QGhttps://www.blogger.com/profile/09706282153048490588noreply@blogger.comtag:blogger.com,1999:blog-7390689584378451863.post-69849302482339343332015-11-16T09:14:35.522-05:002015-11-16T09:14:35.522-05:00Thank you for the great work over the years. Thank you for the great work over the years. Drew - Atlantahttps://www.blogger.com/profile/01496246081302387426noreply@blogger.com