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Ventilation for Acceptable Indoor Air Quality

Western Wyoming Community College

The ASHRAE committee writing standards for ventilation and indoor air quality has released another batch of redlines for public review.  These changes are important because they are referenced into ASHRAE 90.1 — Energy Standard for Buildings — and ASHRAE 90.1 is referenced into the International Energy Conservation Code (IECC).  The IECC is incorporated by reference into federal and state energy laws.

Addendum aa. The indoor air quality procedure has a long history going back to the 1981 standard. Weaknesses in the requirements for identifying the contaminants
of concern, identifying concentration limits and exposure periods, and specifying the percentage of building occupants to be satisfied with perceived IAQ. Although the percentage of building occupants to be satisfied with perceived IAQ may be specified, and the standard requires that it be measured; this measurement usually would take place after occupancy so is often ignored or omitted. This proposed addendum adds requirements for designing to specific targets. The target design compounds and mixtures are specifically identified.

Addendum ab. Indoor CO2 has had a prominent place in discussions of ventilation and IAQ for many years. The relevant issues include the impacts of CO2 on building occupants, the use of CO2 to control outdoor air ventilation rates, CO2 monitoring as an indicator of general IAQ conditions and the use of indoor CO2 to estimate building ventilation rates. This proposed addendum adds a new Normative Appendix D, Estimation of Steady-State Indoor CO2 Concentrations Based on Per Person Ventilation Rates and Occupant Characteristics. The purpose is to describe the estimation of steady-state indoor carbon dioxide concentrations for a given per-person outdoor air ventilation rate.

Addendum ac.  Informative Appendix C (Summary of Selected Air Quality Guidelines) in 62.1-2016 was deleted in a previous addendum. This proposed addendum
adds a new Informative Appendix C with content supportive of changes to the Indoor Air Quality Procedure (IAQP).

Comments are due August 27th.

All ASHRAE redlines are accessible on ASHRAE’s Online Standards Action & Public Review.   We encourage our colleagues to comment.

All ASHRAE consensus documents are on the standing agenda of our regular Wednesday, 11 AM Eastern Time, Open Agenda teleconference.  CLICK HERE to log in.   Additionally, we host an monthly online teleconference for building industry professionals in the mechanical engineering discipline that are active in the education facility market.  It should be obvious that we have mastered the stream of technical standards that determine #TotalCostofOwnership in education facilities.  The next teleconference is on August 30th, 11 AM Eastern time.

Mechanical Engineering Codes and Standards

Feel free to log in.

We also encourage students, faculty and facility management professionals to attend ASHRAE technical committee meetings at its next Winter Conference, January 12-16, 2019 in Atlanta, Georgia.  (LEARN MORE)

 

Issue: [12-21]

Category Mechanical, Energy, Facility Asset Management

Colleagues: Richard Robben, Larry Spielvogel

 


Posted May 24, 2018

Beloit College

ASHRAE International has released several addenda to its widely adopted standard — ASHRAE 62 | Ventilation for Acceptable Indoor Air Quality — which specifies minimum ventilation rates and other measures for new and existing buildings that are intended to provide indoor air quality that is acceptable to human occupants and that minimizes adverse health effects.  Recently released Addendum i contains significant changes to the scope of this document which are now open for public review and can be accessed  on ASHRAE’s Online Standards Action & Public Review Draft page.  (Click here)

Comments are due May 27th.   ASHRAE invites anyone to comment on the development of ASHRAE 62.1 and any other of its consensus documents.   The ASHRAE suite is a swiftly moving suite which effectively sets the standard of care for environmental air systems in education and healthcare facilities.  Many of its committees meet twice a year at various locations around the US; the next Annual conference to be hosted in Houston, June 23-27.   We encourage workpoint subject matter experts in the Houston area — i.e. design, construction and O&M tradespersons working in education and healthcare campus HVAC shops — to attend this conference and sit in on the meetings of ASHRAE 62.1 (or any other technical committee) to observe how leading practice is discovered.

All ASHRAE consensus documents are on the standing agenda of our regular Wednesday, 11 AM Eastern Time, Open Door teleconference.  Anyone is welcomed to join these teleconferences with the login information below:

https://global.gotomeeting.com/join/718914669

You can also dial in using your phone. United States : +1 (408) 650-3123 Access Code: 718-914-669

Issue: [12-21]

Category Mechanical, Energy, Facility Asset Management

Colleagues: Richard Robben, Larry Spielvogel

 


April 21, 2018

University of North Carolina Chapel Hill

ASHRAE International has released several addenda to its widely adopted standard — ASHRAE 62 | Ventilation for Acceptable Indoor Air Quality — several of which may affect the design, construction and operation of education facilities.  These can be found on Pages 36 through 83 of ANSI Standards Action or at ASHRAE’s Online Standards Action & Public Review Draft page.  (Click here)   The changes are non-trivial; a sample of three of them summarized below:

Addendum g: HVAC requirements for minimally occupied spaces

Addendum h:  The standard may be applied to both new and existing buildings but its provisions are not primarily intended to be applied retroactively when the standard is used as a mandatory regulation or code.

Addendum z: Tabulation of requisite ventilation required at the outdoor air intake for many systems.

There are 15 more changes in the batch most recently released.  These specifics will find their way into construction documents and commissioning agreements and operations and maintenance budgets.

Comments are due April 22nd.   ASHRAE invites anyone to comment on the development of ASHRAE 62.1 on its Online Standards Action & Public Review Draft page.  (Click here).   We will place these on the agenda of our regular Wednesday, 11 AM Eastern Time, Open Door teleconference.  Anyone is welcomed to join these teleconferences with the login information below:

https://global.gotomeeting.com/join/718914669

You can also dial in using your phone. United States : +1 (408) 650-3123 Access Code: 718-914-669

 

Issue: [12-21]

Category Mechanical, Energy, Facility Asset Management

Colleagues: Richard Robben, Larry Spielvogel

Link to our ASHRAE 62.1 Workspace

 


September 5, 2017

University of Michigan Ross School of Business

ASHRAE International has released several addenda to its widely adopted standard — ASHRAE 62 | Ventilation for Acceptable Indoor Air Quality — several of which may affect the design, construction and operation of education facilities:

BSR/ASHRAE Addendum 62.1b-201x, Ventilation for Acceptable Indoor Air Quality (addenda to ANSI/ASHRAE Standard 62.1-2016) This proposed addendum responds to increasing requests for more simplified table for ventilation rate procedure of the standard. It contains a simplified ventilation rate table in Informative Appendix D for use in existing buildings where information for calculating minimum ventilation using Normative Appendix A for multiple spaces is often unavailable.

BSR/ASHRAE Addendum 62.1d-201x, Ventilation for Acceptable Indoor Air Quality (addenda to ANSI/ASHRAE Standard 62.1-2016) This proposed addendum deletes Informative Appendix D (Rationale for Minimum Physiological Requirements for Respiration Air Based on CO2 Concentration). Appendix D first appeared in 62-1989. Its purpose was to explain the relationship between oxygen and carbon dioxide in spaces. It is based on data from the 1950’s. Newer information is available. The committee is aware of misuse and confusion caused by the information in its present form and prefers to delete this misused appendix now. The committee may add back relevant informative guidance that assists with implementation of the standard in the next version of the standard.

BSR/ASHRAE Addendum 62.1f-201x, Ventilation for Acceptable Indoor Air Quality (addenda to ANSI/ASHRAE Standard 62.1-2016) The so-called “Multiple Spaces Equation” is very difficult to use, especially for variable volume systems for which there are an infinite number of scenarios with varying airflow, occupancy, supply air temperature, etc., all of which affect system ventilation efficiency. 62.1 includes two options for calculating system ventilation efficiency, a prescriptive approach using Table 6.2.5.2 and a more fundamental approach in Normative Appendix A. This proposed addendum replaces the table approach with two formulas, one used to determine system ventilation efficiency (Ev) and one used to determine minimum primary airflow setpoint intended to be used for VAV systems.

BSR/ASHRAE Addendum 62.2i-201x, Ventilation and Acceptable Indoor Air Quality in Residential Buildings (addenda to ANSI/ASHRAE Standard 62.2 -2016) This proposed addendum would make explicit that placing a new fan in a kitchen or bathroom in an existing dwelling unit can address the airflow deficit that would otherwise have existed through Section A3. This has been assumed to be true, but has not previously been made explicit. This proposed change would make this condition more transparent to users.

BSR/ASHRAE Addendum 62.2j-201x, Ventilation and Acceptable Indoor Air Quality in Residential Buildings (addenda to ANSI/ASHRAE Standard 62.2 -2016) This proposed addendum would explicitly allow existing buildings to use a branch-circuit overcurrent device as an override even if it is not dedicated to only the ventilation fan in recognition that running a new circuit for the fan in an existing home is not always feasible.

Comments are due October 8th.   ASHRAE invites anyone to comment on the development of ASHRAE 62.1 on its Online Standards Action & Public Review Draft page.  (Click here).   We will place these on the agenda of our regular Wednesday, 11 AM Eastern Time, Open Door teleconference.  Anyone is welcomed to join these teleconferences with the login information below:

https://global.gotomeeting.com/join/718914669

You can also dial in using your phone. United States : +1 (408) 650-3123 Access Code: 718-914-669

 

School Assembly Spaces

The International Code Council has received all comments on its proposed changes to Group A codes which includes 2021 International Building Code.   Breakout committees are now sorting through the public comments and preparing them for the Group A Public Comment Hearings, October 24-31, 2018 in Richmond Virginia.  See: Complete 2018 Group A Schedule.

We participate as an observer in several of those committees with an eye toward how new proposals with effect design, construction, operation and maintenance of education and university-affiliated healthcare facilities.   The record of our work and attention to concepts in play is reported routinely on this site and always on the agenda of our weekly open agenda teleconferences.  At the moment there is not much for public stakeholders to do until the Public Comment monograph is released to the public on August 31st.  We will be participating in the ICC breakout committee meetings until then.

On August 31st, 11:00 AM we will host a breakout teleconference of our own to sort through all the safety and sustainability issues in play as a result of the public comments.  Anyone is welcomed to join this teleconference with the login information in the link below:

ICC Group A Agenda Review

 

Issue: [17-237]

Category: Architectural, Facility Asset Management, Space Planning

Colleagues: Mike Anthony, Jack Janveja, Richard Robben

University of Chicago Business School


Posted July 9, 2018

We focus today on a proposal to change the 2018 International Building Code (IBC) so that the general rules for (Group E) educational assembly in the 2021 IBC will read as follows:

303.1.3 Associated with Group E occupancies. A room or space used for assembly purposes that is associated with a Group E occupancy, with an occupant load of 300 or less, is not considered a separate occupancy.

This proposal (identified in our previous 2021 IBC posts) will require larger gymnasiums and auditoriums associated with a Group E occupancy to be protected with a fire suppression system in areas where the previous interpretation was to allow these larger spaces to be considered part of the Group E occupancy.   It affects our #TotalCostofOwnership agenda which seeks the optimal reconciliation of the competing requirements of safety and economy.

This proposal — made by the ICC Building Code Action Committee – will affect how architects and fire protection professionals approach new education facility design.   The parent committee rejected the proposal as recorded in the transcript of the ICC Group A Spring Committee Action Hearings.

 Search the Complete Monograph to see the proposal detail — PDF Page 71, Item G14-18

Comments are due July 16th.  You may comment directly on the ICC cdpACCESS platform (CLICK HERE). Additionally, public comment is possible at the Fall Committee Action Hearings.   The results of the Group A Hearings will be revisited during the Group A Public Comment Hearings, October 24-31, 2018 in Richmond Virginia.  See: Complete 2018 Group A Schedule.

We give all proposals involving education facilities a fair hearing through across the full span of the ICC Code Development Process.  Accordingly, this item will be on the agenda of our breakout teleconference scheduled for July 12th, 11:00 AM Eastern time during which time we will also review the positions of other education industry trade associations on this specific issue; if any.

ICC Group A Markup Session

We keep the entire ICC suite on the standing agenda of our weekly Open Door Teleconference — every Wednesday, 11 AM Eastern Time.  CLICK HERE to log in.

 

Issue: [17-237]

Category: Architectural, Facility Asset Management, Space Planning

Colleagues: Mike Anthony, Jack Janveja, Richard Robben

 

Savannah State University

Guide to Premises Security

School of Aristotle | Gustav Spangenberg

NFPA 730 Guide to Premise Security is a consensus document that describes construction, protection, occupancy features, and practices intended to reduce security vulnerabilities to life and property.  Related document — NFPA 731 Standard for the Installation of Electronic Premises Security Systems covers the application, location, installation, performance, testing, and maintenance of electronic premises security systems and their components.   The first is a performance document; the second a prescriptive document for the construction, operation and maintenance of electrotechnologies that support premise security.

Managing large, complex, capital‐intensive educational facility infrastructure assets with unique architectural and social identities is different from managing other asset classes. Differences in everything from department culture to annual facility use patterns mean that facility managers cannot implement the same safety approaches in all buildings.  Approaches must be scaled and tailored to the occupancy type and informed by the interconnectedness and the specifics of a given facility.  Accordingly, the original University of Michigan standards advocacy enterprise (see ABOUT) began following the development of safety concepts in both NFPA 730 and NFPA 731 with the release of the 2008 Edition.   Thereafter, it collaborated with trade associations and subject matter experts from other universities (notably Georgetown University and Evergreen State University) to advocate user-interest concepts in the 2011 revisions.    A summary of advocacy action is summarized in the links below:

Code Talkers: Anthony Davis | May June 2011

14-44 Executive Summary of Work on NFPA 730 and NFPA 731 for [11-58] and [11-59] ACD-64 –

The First Draft Report of the 2020 Revision has been balloted and will be posted September 6, 2018.   Comments are due November 15, 2018.

In light of the prospect of federal regulatory activity on school safety we will follow the participation of the many education industry trade associations on school security issues.  We will host a breakout teleconference on this standard — and related education facility disaster and emergency standards — on August 2nd*September 21st, 11 AM.

 

All NFPA consensus documents are on the standing agenda of our weekly Open Door teleconference — every Wednesday, 11 AM Eastern time.  Anyone may join these teleconferences with login information in this link: (Open Door Login).

Issue: [10-3], [11-58], [14-44] and [16-127]

Category: Electrical, Telecommunications, Information & Communications Technology, Public Safety, Risk Management, #SmartCampus

Colleagues: Mike Anthony, Jim Harvey, Richard Robben

*Teleconference complete.


An online presentation by Michael C. Peele (Georgetown University) — one of the voting members of NFPA 730 and NFPA 731 technical committees– was recorded and is linked below.

FM Global Data Sheet Updates

Left Panel Of George Julian Zolnay’s Allegorical “Academic, Business & Manual Education” Granite Frieze At Francis L. Cardozo High School (Washington, DC)

FM Global is one of several organizations that produce technical and business standards that are referenced into external consensus standards that are incorporated by reference into construction, operation and maintenance consensus documents.   These standards contribute to the reduction in the risk of property loss due to fire, weather conditions, and failure of electrical or mechanical equipment.  They incorporate nearly 200 years of property loss experience, research and engineering results, as well as input from consensus standards committees, equipment manufacturers and others.

A scan of its list of August 2018 data sheet updates govern safety in technologies present in education facilities:

  • Process safety
  • Hail damage
  • Cost trends
  • Vessels and piping
  • Hot work management

FM Global provides direct access to the full span of its documents at this link:

FM GLOBAL PROPERTY LOSS PREVENTION DATA SHEETS

You will need to set up (free) access credentials.

Since these documents contribute to a common understanding of accepted good practice and standard of care in education facilities we keep them on the standing agenda of our weekly Open Door teleconference — every Wednesday, 11:00 AM Eastern time.   CLICK HERE to log in.

Issue: [Various]

Category: Risk Management, Facility Asset Management


Learn more HERE:

University of Pennsylvania demonstrates the critical importance of sprinklers in dormitories

Syracuse University presents an eclectic mix of risk management challenges

Jackson Laboratory

Education Industry Construction Spend

Image credit: ESPN College Town

Update on the build-out of these “cities-within-cities” which,

when observed as a network, constitute a sovereign nation.

 

The value of construction put in place in  June 2018 by the US education industry proceeded at a seasonally adjusted annual rate of $67.9 billion, 11.0 percent (±2.1 percent) below the revised May estimate of $76.3 billion.  (This number does not include renovation and new construction in university-affiliated health care delivery enterprises).   The complete report is available at the link below:

https://www.census.gov/construction/c30/pdf/release.pdf

At this rate, the US education facilities industry (which includes colleges, universities, technical/vocational and K-12 schools, most university-affiliated medical research and healthcare delivery enterprises, etc.)  is the largest non-residential building construction market in the United States.  Overall — including construction, energy, custodial services, furnishings, security. etc., — the non-instructional spend plus the construction spend of the US education facilities is approximately $300 billion per year.  Cash throughput at this scale draws comparisons with the $223 billion annual revenue of Berkshire-Hathaway (a Fortune #2 corporation) and the $304 billion national gross domestic product of Denmark.

Construction cameras overlooking construction activity at US universities

(more cameras coming)

The next (June) report will be released on September 3rd.  We encourage the education facilities industry to contribute to the accuracy of these monthly reports by responding the US Census Bureau’s data gathering contractors.

All federal agency activity is on the standing agenda of our weekly Open Agenda teleconference — every Wednesday, 11:00 – 11:30 AM Eastern Time.   Anyone is welcomed to join these teleconferences by clicking here.

LEARN MORE:

Architectural Billing Index


From our archives:

 

Education Management Systems

Click on image

Since 2013 we have been following developments in an International Organization for Standardization committee: ISO 288 – Educational organizations management systems – Requirements with guidance for use;  a committee spun off from the committee that develops the more widely known ISO 9000-family of quality management standards prepared for industries and global regulatory agencies.  The global Secretariat is South Korea; with 40 participating member nations and 11 observing nations.  The status of this project can be tracked at the link below (You will need login credentials)

ISO Working Area

It is noteworthy that the US education industry is not a participant in this global standard which will likely have implications for standards setting for all aspects of educational organizations including the management of Massive Open Online Courses which we have covered in previous posts.

Link to 2016-2018 Coverage

The ISO/TC 288 has reached a milestone with its May 1st of the First Edition (Click on image):

All ISO consensus documents are on the standing agenda of our weekly Open Door teleconferences every Wednesday, 11 AM Eastern time.  Anyone is welcomed to Click Here to login and help prepare user-interest comments on documents open to public review:

Issue: [13-100]

Contact: Mike Anthony, Christine Fischer, Jack Janveja, Rich Robben

Category: Academic Interest, Management, Finance & Administration, International Standards


 

Standards Curricula Program

NIST Headquarters (Click on image)

The Standards Coordination Office of the National Institute of Standards and Technology conducts standards-related programs, and provides knowledge and services that strengthen the U.S. economy and improve the quality of life.  Its goal is to equip U.S. industry with the standards-related tools and information necessary to effectively compete in the global marketplace. 

Every year it awards grants to colleges and universities through its Standards Services Curricula Cooperative Agreement Program  to provide financial assistance to support curriculum development for the undergraduate and/or graduate level. These cooperative agreements support the integration of standards and standardization information and content into seminars, courses, and learning resources. The recipients will work with NIST to strengthen education and learning about standards and standardization. 

The 2019 grant cycle will require application submissions sometime in April 2019.   Specifics about the deadline will be posted on the NIST and ANSI websites.  We will pass on those specifics as soon as they are known.*

The winners of the 2018 grant cycle are Bowling Green State University, Michigan State University,  Oklahoma State University, and Texas A&M University. (Click here)

Information about applying for the next grant cycle is available at this link (Click here) and also by communicating with Ms. Mary Jo DiBernardo (301-975-5503; maryjo.dibernardo@nist.gov)

 

* Last year the application submissions were due at NIST on April 16, 2018Click here for link to the previous announcement.   It is likely that the deadline for the current year grant cycle will follow the same pattern.

Technical Negotiation Skills for Students

Click on image for original ANSI post

Too little standardization: chaos.  Too much standardization: stifled innovation.  Guiding the next generation through technical and business landscapes where good minds disagree on reconciling these competing requirements of safety, economy and sustainability is an initiative undertaken by the Committee on Education of the American National Standards Institute (ANSI) — the voice of the U.S. standards and conformity assessment system.  ANSI is the official U.S. representative to the International Organization for Standardization (ISO) and, via the U.S. National Committee, the International Electrotechnical Commission (IEC).

The program — Negotiation Skills Competition — now in its third year (somewhat like “moot court” competitions in most law schools) — is explained more fully in the link below:

Calling all University Students and Professors

Participation in the competition is open to university teams only, and space is limited to four to six teams. Multi-disciplinary teams consisting of undergraduate or graduate students in different areas of study are highly encouraged.

To be considered for participation in the competition, university students and professors should contact ANSI’s Lisa Rajchel at lrajchel@ansi.org as soon as possible.  Lisa would like a commitment to participate by September 1st.

Discovering leading practice for public safety in schools, colleges and universities is a high priority for the education industry.  We have been keeping track of school security standards for over 10 years now and it is only just recently have we observed the action of trade association involvement gather pace:

School Security Standards

Developing public policy solutions to the school security problem — based upon the foundation of ANSI-accredited consensus documents — is a near perfect case study for faculty and students to understand the following:

The National Technology Transfer and Advancement Act

White House Office of Management and Budget Circular A-119

The legislative drafting technique of “incorporation by reference”

Legislative lobbying, litigation and education industry trade associations

Because the elevated level of discussion on school security presents a “teachable moment” — and because so few faculty have experience wit leading practice discovery in ANSI accredited standards processes from the user-interest point of view — Standards Michigan re-states is standing invitation to faculty and students to click in to any of our weekly Open Door teleconferences — every Wednesday, 11 AM Eastern time.  During breakout teleconferences we will walk through public input and commenting opportunities — keystroke by keystroke — in interactive sessions on online public review environments.   We get very specific.  

Smart Grid & Smart City Standards

We collaborate with the IEEE Education & Healthcare Facilities Committee as a voting “user-interest” on the US National Committee of the International Electrotechnical Commission (USNC) that is developing an international standard for Smart Grid and Smart City concepts.    Because campuses are “cities-within-cities” and because we know there is a great deal of federal funding for smart grid research that is relevant to the academic side of the education industry we want to front-run the trend toward #SmartCampus as far as practicality allows; always asking the same question:

How will these high-level policy concepts translate into tangible value into first and running costs that track in our construction, operation and maintenance budgets?

Respecting international copyright regulations we are able to show some of a related project’s scope in the link below:

IEC 62559-2:2015 | Use case methodology

Backgrounder: Use Case Modeling for Smart Grids According to IEC/PAS 62559

The Association of Medical Imaging and Electrical Equipment Manufacturers (NEMA), the Administrator of the USNC Technical Advisory Group has released material for US stakeholders to review.   Because of copyright restrications upon draft material — very common in the development of regulatory products — we are unable to release the full text of the documents.   We are able, however, to provide a broad overview of the constellation of consensus documents under consideration:

SyCSmartEnergy/31/CD- IEC 62913-1/TS/Ed1: Generic Smart Grid Requirements – Part 1: Specific application of the Use Case methodology for defining Generic Smart Grid Requirements according to the IEC System approach-

SyCSmartEnergy/32/CD- IEC 62913-2-1/TS/Ed1: Generic Smart Grid Requirements – Part 2-1: Domains – Grid related domains, these include Transmission Grid Management, Distribution Grid Management, Microgrids and Smart Substation Automation-

 SyCSmartEnergy/33/CD- IEC 62913-2-3/TS/Ed1: Generic Smart Grid Requirements – Part 2-3: Domains – Resources connected to the grid related domains, these include Bulk Generation, Distributed Energy Resources, Smart Home / Commercial / Industrial / DR-Customer Energy Management, and Energy Storage-

 SyCSmartEnergy/34/CD- IEC 62913-2-4/TS/Ed1: Generic Smart Grid Requirements – Part 2-4: Domains – Electric Transportation domain-

 SyCSmartEnergy/35/CD-IEC 62913-2-5/TS/Ed1: Generic Smart Grid Requirements – Part 2-5: Domains – Support Functions related domains, these include Metering Management and Asset Management-

Comments are due August 10 and August 17.  We will host a dedicated teleconference to review our response to the USNA/IEC query on Friday, August 10th.   Additionally these documents will be referred to the IEEE Education & Healthcare Facility Committee (E&H) which meets 4 times monthly.  These teleconferences are open to the public.  Login information is available in the link below:

Teleconferences | August 14, 2018

 

Issue: [15-197]

Contact: Mike Anthony, Jim Harvey

Category: Electrical, Telecommunications, Energy Management, #SmartCampus, Informatics, Information & Communications Technology

 

Lease Accounting

Men weighing merchandise | Circa 540 and circa 530 BC | Metropolitan Museum of Art

The education industry provides a significant market for real property square-footage.   Operation and management of that square-footage — often widely scattered across the globe — is a consideration in our lower #TotalCostofOwnership agenda.  The Financial Accounting Standards Board (FASB) has issued an Accounting Standards Update (ASU) that reduces costs and eases implementation of its leases standard for financial statement preparers.   This standard should interest property management professionals in the education industry who are lease property on behalf of their organizations; or are lessors.

From the public announcement:

“The targeted improvements in the ASU address areas our stakeholders identified as sources of unnecessary cost or complexity in the leases standard,” stated FASB Chairman Russell G. Golden.  “They represent the FASB’s commitment to proactively address implementation issues raised by our stakeholders to ensure a successful transition to the new standard without compromising the quality of information provided to investors.”

 The ASU simplifies transition requirements and, for lessors, provides a practical expedient for the separation of nonlease components from lease components.
Specifically, the ASU provides:

  • An option to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in its financial statements, and
  • A practical expedient that permits lessors to not separate nonlease components from the associated lease component if certain conditions are met.

The latest and most complete public announcement is linked HERE Comments are due September 12th.

You are encouraged to collaborate directly with the FASB.

We have already reviewed the 46-page exposure draft but have set it aside because of higher priority projects for the moment.  We use our open agenda teleconference every Wednesday at 11 AM Eastern time to review public commenting opportunities for the FASB suite — and all other consensus and open source documents — that set standards of care.  CLICK HERE to log in.

 

 


PREVIOUS POSTS:

FASB | Revenue Recognition for Grants

FASB | Not-for-Profit Entities Accounting Guidance for Contributions

FASB | Not-for-Profit Update

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