Status: The Exposure Draft comment period has been extended to November 30, 2018.
Details: Although the language of SSAP No. 22R – Leases have been substantially revised following the issuance of ASU 2016-02 – Leases (Topic 842), the resulting changes to statutory accounting are not significant. The biggest modification to GAAP guidance is that the requirement to treat operating leases as financing leases prescribed by ASC 842-10-25 has been rejected. For statutory accounting purposes, all leases are considered operating leases with lease expense recognized on a straight-line basis over the lease term. Additionally, the requirement to disclose the calculated right-of-use assets and corresponding liabilities (which would have required a major calculation exercise to produce the GAAP disclosure numbers) has been removed. SSAP No. 22 guidance will now agree fully with ASC Topic 842 with the exception of the treatment of operating leases.
View the SAPWG discussion minutes.