Summary of Statement No. 22

Changes in the Provisions of Lease Agreements Resulting from Refundings of Tax-Exempt Debt--an amendment of FASB Statement No. 13 (Issued 6/78)

Summary

A refunding involves the use of the proceeds from issuing new debt to retire existing debt. This Statement specifies that, if a change in the provisions of a lease results from a refunding by the lessor of tax-exempt debt that is accounted for as an early extinguishment (retirement) of debt, any resulting gain or loss from the adjustment must be recognized currently.