Industry News: Around the Industry
Key Lessee and Lessor Decisions Made in the Leases Project
The FASB and IASB Boards met June 13, 2012 in London and made key decisions on lessee and lessor accounting in their Leases Project. Although they finally decided all leases are not alike, they made a split decision as to how to classify them based on the type of asset leased. The decision presents challenges for most equipment lessees and, possibly, for lessors.
This was the last major decision-making meeting of the joint Boards (there will be one more meeting in July) on the project prior to issuance of a revised Exposure Draft (ED). The timeline for the project is:
- Last decision-making meeting regarding remaining (minor) issues in July 2012,
- Draft ED in third quarter 2012,
- Issue ED fourth quarter 2012 with 120-day comment period,
- Review comments letters and revise ED if necessary in first half 2013
- Issue final standard in second half 2013
- Effective date would be 2016 or later to allow lessees and lessors time to develop systems, extract lease data and prepare comparative financials under the new models.
|Contact Name:||Ralph Petta|