FASB and IASB commence redeliberations of lease accounting proposal

Published on: 21 Nov 2013

Yesterday, the FASB and IASB began redeliberating their joint lease accounting proposal, which they issued back in May 2013. At the joint meeting, the FASB and IASB staffs presented to the boards (1) a summary of the comments and feedback received on the proposal and (2) a plan for redeliberating the significant issues associated with it.

The items that the boards tentatively decided to discuss during redeliberations include:

  • Lessee accounting.
  • Lessor accounting.
  • Lease classification.
  • Measurement (e.g., lease term, variable lease payments, residual value guarantees).
  • Scope (e.g., definition of a lease, short-term lease scope exception).
  • Sale-and-leaseback and leveraged lease arrangements.
  • Presentation and disclosure requirements.
  • Transition requirements.
  • Other items (e.g., impact of business combinations, related-party leases).
  • Effective date and cost-benefit considerations.

The boards do not yet have an expected completion date for the leases project. For more information on the joint lease accounting project, see the project page on the FASB’s Web site.

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