Lease Accounting Project
A collection of documents covering proposed changes in lease accounting and financial reporting, their impact on the leasing and finance industry, and ELFA policy statements.
- :: 2013 Exposure Draft and Comment Letters
- :: Updates
- :: 2010 Exposure Draft and Comment Letters
- :: Analysis and Research
- :: Events
- :: Press Statements
- :: 2010 Exposure Draft and Comment Letters
- :: Questions?
- :: Background Documents
2013 Exposure Draft and Comment Letters
The second Leases Project Exposure Draft was issued May 16, 2013. There was a 120-day comment period. More than 625 lessees and their financing partners and other stakeholders should submitted comment letters by the Sept. 13, 2013, deadline.
- Jan. 27, 2014 - On Jan. 23, the FASB and IASB held a joint non-decision making meeting to discuss the Leases Project. Its purpose was to identify a number of proposed options and staff recommendations to be considered at future decision-making meetings, the next of which will be scheduled sometime in March at the FASB offices in Norwalk, CT. Read a brief summary of what was discussed.
- Dec. 19, 2013 - Read the latest update on the lease accounting project from Bill Bosco.
- Oct. 3, 2013 - Feedback on lease accounting project reveals significant opposition; more than 625 comment letters submitted. Read full story.
- Sept. 5, 2013 - ELFA member company CG Commercial Finance released an animated video outlining the issues and implications related to lease accounting changes proposed by FASB and IASB in the latest Exposure Draft. The video is available at www.cgcommercial.com/resourcecenter. With the debate of the final rules continuing and the Sept. 13 deadline for comment letters fast approaching, businesses impacted by the proposed account changes still have an opportunity to send their comment letters. Learn more.
- Sept. 3, 2013 In a press statement, ELFA President and CEO William G. Sutton, CAE, highlighted recent developments that add to mounting evidence that FASB and IASB should reevaluate their proposal to overhaul lease accounting. He also encouraged lessees and their financing partners and other stakeholders to submit comment letters on the lease accounting Exposure Draft by the Sept. 13 deadline.
- Aug. 28, 2013 In an email to all ELFA members, President and CEO William G. Sutton, CAE, urged members and their customers and other stakeholders to submit comment letters by the Sept. 13 deadline. The message includes sample text for lessors to send to their customers.
- Aug. 1, 2013 - The Summer issue of ELFA's magazine urges lessors and lessees to Speak Out on Lease Accounting. It also highlights the Hidden Costs of the Lease Accounting Proposal and offers tips to prepare.
- July 9, 2013 - On July 9, ELFA's lease accounting team—members Rod Hurd, John Bober and Bill Bosco and Chief Operating Officer Ralph Petta—met at the offices of the Financial Accounting Standards Board in Norwalk, Conn., to discuss the lease accounting Exposure Draft. Learn more.
- July 3, 2013 - FASB AND IASB have announced they will hold several joint public roundtable meetings on their revised lease accounting proposal. Upcoming U.S. meetings include Sept. 23 in Norwalk, Conn., and Oct. 3 in Los Angeles, Calif. The meetings will provide an opportunity for those that have submitted a comment letter, or who still intend to submit a comment letter, to discuss the proposal with the Boards in further detail. The Boards are seeking participation from preparers, auditors, investors and others. Learn more.
- June 26, 2013 - ELFA has joined over 30 organizations in signing a letter to the FASB and IASB expressing concern over the lease accounting project. The letter reads, in part: "In its current state, it is our opinion that the proposed leasing standard may result in substantial costs to businesses, lack any benefits for investors and drive economic activity rather than reflect it." Read the full letter.
- June 26, 2013 - Lease Accounting Project Update & Commentary
- May 16, 2013 - ELFA Press Statement on the Lease Accounting Exposure Draft
- May 16, 2013 - Lease Accounting Project Update & Commentary
- April 17, 2013 - Update from FASB on the Leases Project
- April 2, 2013 - CFO.com reports on the lease accounting project, quoting ELFA member Bill Bosco. Wait Continues for Lease Accounting Clarity
- Feb. 5, 2013 - Customer Reaction to the Leases Accounting Project: Has Their Behavior Changed? Bill Bosco conducts an informal survey of ELFA members, confirming that the Lease Project will not change customer behavior significantly, because the key reasons to lease will continue to exist.
- October 15, 2012 - What's the status of the lease accounting proposal, and what should you be doing now to prepare? Read Lease Accounting: 6 Things You Need to Know, from the October 2012 Equipment Leasing & Finance magazine.
- Aug. 30, 2012 - ELFA has issued an unsoliticted comment letter to FASB/IASB.
- July 11, 2012 - The IASB and FASB convened a key decision-making meeting on June 12, 2012. They are close to completing all work needed to write a new Exposure Draft (ED). This update covers key provisions likely to be included in the new ED.
- June 13, 2012 - Key Lessee and Lessor Decisions Made in the Leases Project
- June 11, 2012 - Eliminating leveraged lease accounting rules would be contrary to historical precedent and bad for the U.S. economy, write Bill Bosco, Michael Cross, David DeBoskey and Ted Jenkins in the article "Leveraged Leasing Reaches Crossroads" in the June 2012 issue of Practical Tax Strategist.
- May 29, 2012 - The FASB and IASB held a non-decision educational meeting last week to discuss alternatives to lessee and lessor accounting after having conducted a series of additional outreach meetings to get feedback on the options. The good news is they dropped Approaches B and C as the feedback said they were too complex. The other good news is the two Chairs seem to agree that there is more than one type of lease so they are open to a straight line P&L method for the former operating leases. The bad news is that there is still not majority support for D (straight line). Our coalition planned to meet with Chairman Seidman on June 4, and the boards plan for a vote later in June.
- April 24, 2012 - Project Update, April 2012
- March 6, 2012 - Lease Accounting Project Update and Commentary.
- March 2, 2012 - At a recent IASB/FASB meeting, the accounting standards-setters were not able to reach an agreement on an outstanding income statement issue. Read more in Accounting Today.
- Jan. 24, 2012 - The Leases Working Group, an advisory body to the IASB and FASB, expressed support for a number of alternatives being considered by the Boards, which are designed to allow lessees to keep a level expense profile as is currently the case with existing operating leases. In May 2011, the Boards proposed that lessee accounting should include a front-loaded expense profile, which has been the subject of much debate.
- Jan. 4, 2012 - Lease Accounting Project Update and Commentary
Analysis and Research
2010 Exposure Draft and Comment Letters
Released by the IASB/FASB: Aug. 17, 2010. Comment deadline was Dec. 15, 2010.