(1)
Financial Accounting Standards Board
It is common known as FASB. It is a private, non-profit organization which is a standard setting body. The main purpose of the FASB is to create and improve GAAP (Generally Accepted Accounting Principles) within the US. U.S GAAP is a collection of generally practiced and followed rules and standards of accounting in US. U.S GAAP provides global guidelines for preparation and disclosure of financial statements of public companies.
To Explain: the policies companies using U.S GAAP follows for classifying finance leases.
(2)
To state: the policy the company AF will follow when it begins to apply the new lease guidance in the 2015 update to IFRS 16.
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