United States

SEC Staff Issues No-Action Letter about Effect on Net Capital of a Broker-Dealer’s Accounting for Operating Leases

Nov 22, 2016
From the Financial Reporting View

The SEC staff recently issued a no-action letter that permits, for regulatory net capital purposes, a broker-dealer to add back the value of an operating lease asset to the extent of the associated operating lease liability. If the operating lease liability is greater than the associated operating lease asset, the broker-dealer would deduct for net capital purposes the amount by which the liability exceeds the associated lease asset. This no-action letter is effective for only a broker-dealer that has adopted FASB ASU No. 2016-02, Leases.

Read SEC No-Action Letter