FASB Issues Proposal to Clarify Asset Derecognition Guidance and Address Accounting Treatment for Partial Sales of Real Estate

On June 6, the Financial Accounting Standards Board (FASB) issued a proposal to clarify the scope of recently issued guidance on sales of in-substance nonfinancial assets that was finalized in conjunction with the new Revenue from Contracts with Customers standard. Additionally, the proposal would provide guidance for partial sales of nonfinancial assets such as real estate.

NAREIT believes that the proposal would be of particular interest to Equity REITs that sell partial interests. If you are interested in participating in a NAREIT task force that will evaluate the proposal and develop a comment letter, please contact Christopher Drula, NAREIT’s vice president of financial standards, at cdrula@nareit.com by June 30. The comment letter deadline is Aug. 5.

(Contact: Christopher Drula at cdrula@nareit.com)

 

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