Accounting Technical

Leases exposure draft: understanding the proposal

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The FASB's lease accounting exposure draft (ED) proposes to replace current lease accounting with a new approach that could have significant impacts for many financial statement users and preparers.

For example, the proposal would require lessees to recognize assets and liabilities arising from their involvement in most leases. The ED also proposes a new lease definition, changes to lease term and lease payments, and two new lease classifications. Understanding how the proposal differs from today's accounting guidance is the first step to determining the potential effects on financial reporting.

In this webcast, our panel of EY's lease accounting professionals and a public-company preparer will have an interactive discussion covering:

  • Key lease accounting concepts included in the proposal, such as lease definition, term and payments
  • The new proposed lease classification principle
  • Impact on balance sheets and patterns of lease revenue and expense recognition
  • Important judgments that may be necessary to apply the proposed lease accounting
  • Potential changes to financial statement presentation and key lessor and lessee operating metrics
  • Next steps in the joint leases project



Betty F. Davis

Ernst & Young LLP

Betty Davis is a Partner in Ernst & Young LLP’s Financial Accounting On Call Advisory Services Group in Washington, D.C. where she provides clients and other EY professionals with advice on accounting matters involving leasing and real estate transactions. Prior to joining the On Call Group in October 2004, Betty spent over five years in the firm’s Department of Professional Practice, where she focused on lease accounting matters, and 14 years at Potomac Capital Investment Corporation, a major investor in leasing and financial investments, most recently as Vice President and Controller.

Betty is a Certified Public Accountant in the District of Columbia and Maryland. She graduated from the University of Maryland with a B.S. in Accounting. She serves on the Financial Accounting Committee of the Equipment Leasing and Finance Association and is a member of the Maryland and American Institute of Certified Public Accountants.


Mark Mahar

Ernst & Young LLP

Mark Mahar is a Partner in Ernst & Young LLP’s Professional Practice Group. Mark joined the Department of Professional Practice in July 2009 and focuses on leasing and real estate-related accounting matters. Mark is responsible for developing EY's interpretative accounting guidance, interacting with standard setters and other regulators as well as providing advice to clients and audit engagement teams. Prior to joining EY, Mark served as an Associate Chief Accountant in the Securities and Exchange Commission's Office of the Chief Accountant.

There, Mark dealt with various accounting issues, which included coordinating a technical analysis and communicating the SEC staff's positions.

Mark earned a Bachelors of Science degree from Villanova University in Pennsylvania. He is a Certified Public Accountant in the District of Columbia and is a member of the American Institute of Certified Public Accountants.

Bert Nappier

FedEx Corporation

Bert Nappier is VP and Corporate Controller at FedEx Corporation. Bert’s responsibilities include overseeing external financial reporting, key accounting matters, SOX 404 compliance and corporate governance matters and enterprise payroll. From 2009 through 2011, Bert's team was recognized in the Investor Relations Global Rankings for best financial disclosures in the U.S. (Top 5 in 2010 and 2011 and "Best" in 2009.) Prior to joining FedEx in 2005, Bert was the Director of SEC Reporting and Accounting at Wright Medical Technology and an auditor for national accounting firms.

 Bert received a B.S. of Accountancy and M.S. of Taxation from the University of Mississippi. Bert is a Certified Public Accountant in Tennessee and a member of the American Institute of Certified Public Accountants and the Tennessee Society of Certified Public Accountants. He is also a member of the Institute of Management Accountants’ Financial Reporting Committee, which provides feedback directly to the FASB, IASB and SEC on accounting and financial reporting matters.


Dan Knightly

Ernst & Young LLP

Dan Knightly is a partner in Ernst & Young LLP's Professional Practice Group. In this position, Dan is responsible for consulting with engagement teams on technical accounting, auditing and reporting matters, monitoring activities of standard-setting bodies and leading professional education courses. Dan also chairs the firm’s global leases subject matter group.

Prior to joining the Professional Practice group, Dan worked in our Assurance practice, most recently in the Houston office, serving multinational clients primarily in the technology industry.