NAREIT Requests Clarification from FASB on Proposed Standard

NAREIT wrote to the Financial Accounting Standards Board (FASB) on June 30 to ask for clarification on the Proposed Accounting Standards Update Revenue from Contracts with Customers (Topic 606) Identifying Performance Obligations and Licensing.

In its letter to FASB, NAREIT said the proposed clarifications don’t provide clarity on awhether commitments by lessors/landlords to pay property taxes, maintain insurance and provide common area maintenance related to leased real estate should be treated as being distinct from the obligation to provide the leased space to the lessee.

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

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