Go to Source
The FASB staff told the Board at a public meeting that it responded to a technical inquiry by saying that, under ASC 842, lessors can continue to recognize a reserve (i.e., allowance for uncollectible operating lease receivables) under the loss contingency guidance in ASC 450-20 after applying the collectibility guidance in ASC 842. The staff made the comments in response to questions that arose after the FASB issued final guidance clarifying that receivables related to operating leases are not in the scope of the new credit impairment guidance and should instead be accounted for under ASC 842.