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In our comment letter, we support the FASB’s proposal to (1) allow lessors that are not manufacturers or dealers to continue to use their cost, less any volume or trade discounts, as the fair value for the underlying asset and (2) clarify that lessors in the scope of ASC 942, Financial Services — Depository and Lending, should classify principal payments received from sales-type and direct financing leases in investing activities in the statement of cash flows. However, we recommend that the Board make certain edits to the transition guidance. We also recommend that the Board take this opportunity to clarify two other aspects of the new leases guidance.