The Financial Accounting Standards Board has issued a proposed Accounting Standards Update to address certain issues in the new leasing standard.

Specifically, the proposed ASU aims to align the guidance for the fair value of the underlying asset by lessors that are not manufacturers or dealers under Topic 842, “Leases,” with existing guidance.

This would mean that the fair value of the underlying asset at the start of the lease would be its cost – unless there had been a significant lapse of time between the acquisition of the asset and the start of the lease, the definition of “fair value” in Topic 820, “Fair Value Measurement,” should be applied.

Under the proposal, lessors within the scope of Topic 942, “Financial Services – Depository and Lending,” would also be required to present all “principal payments received under leases” within investing activities.

Comments are requested by Jan. 15, 2019.