FASB ASC 842: Exposure draft on common control arrangements

On November 30, 2022, FASB issued an Exposure Draft Lease (Topic 842), Common Control Arrangements, to attempt to resolve pressing questions on the application of FASB Accounting Standards Codification (FASB ASC) 842, Leases, to leases (or potential leases) between related parties under common control. Those questions pertain to the decision in FASB ASC 842 that related party leases should be applied “on the basis of legally enforceable terms and conditions of the arrangement.” (ASU 2016-02, BC 374). In