Jan 23, 2017
From the Financial Reporting View
KPMG LLP recently commented on the Federal Accounting Standards Advisory Board (FASAB) Exposure Draft, Leases: An Amendment of Statement of Federal Financial Accounting Standards (SFFAS) 5, Accounting for Liabilities of the Federal Government and SFFAS 6, Accounting for Property, Plant, and Equipment. The proposal would create two categories of leases, non-intragovernmental and intragovernmental.
KPMG supports the proposal to simplify the accounting for intragovernmental leases. However, the firm encourages FASAB to collaborate with the Office of Management and Budget about the budgetary accounting guidance to minimize confusion about the differences in concepts and terminology between the proprietary and budgetary accounting guidance.