20 March 2014
To the Point - Boards back away from some key aspects of leases proposal
In joint redeliberations, the IASB supported a single on-balance sheet model for lessee accounting while the FASB supported a dual on-balance sheet model. Despite this fundamental difference, the Boards reiterated their commitment to seek a converged solution. The Boards also indicated that they do not intend to significantly change lessor accounting. Instead, they supported retaining a dual classification model. The Boards also reached tentative decisions on lease term, a short-term lease exception and other ways to simplify their 2013 proposal. Our To the Point publication tells what you need to know about these decisions.
21 November 2013
To the Point - Boards to redeliberate key aspects of lease accounting - again
The FASB and the IASB discussed the feedback they received on their joint lease accounting proposal and decided to redeliberate the following topics: lease definition and scope, lessee accounting model, lessor accounting model, lease classification, lease measurement provisions and disclosure requirements. Our To the Point publication tells you what you need to know about the Boards' redeliberation plans.
30 October 2013
Financial Reporting Developments - Lease accounting
We have updated our Financial Reporting Developments publication on lease accounting to provide additional interpretive guidance.
13 September 2013
Comment Letter - FASB/IASB proposal on leasing
While we continue to support the Boards’ efforts to improve the accounting for leases to provide greater transparency in financial reporting and address the needs of users of financial statements, we do not support the Proposal. We are unable to support the Proposal because it is unclear to us whether the ED would significantly improve the decision-useful information available to financial statement users. It also is unclear to us whether any of the perceived benefits to financial statement users would justify the costs and complexity of applying the ED.
5 September 2013
Technical Line - A closer look at the new lease accounting proposal - telecommunications
The FASB and the IASB have issued exposure drafts that would require lessees to recognize assets and liabilities arising from their involvement in most leases. The proposal would significantly change the accounting for leases and could have far-reaching implications for telecom companies' finances and operations. This Technical Line discusses the effect of the proposal on telecommunication companies and supplements our general Technical Lines, A closer look at the new lease accounting proposal (pdf, 865.4kb) and How the lease accounting proposal might affect your company (pdf, 1.6mb).
25 July 2013
Technical Line - How the lease accounting proposal might affect your company
The FASB and the IASB have issued exposure drafts that would require lessees to recognize assets and liabilities arising from their involvement in most leases. This Technical Line publication builds on our earlier Technical Line (pdf, 865.4kb) , A closer look at the lease accounting proposal, and provides more detail and additional examples of how companies might be affected. Entities would still classify leases, but they would use different criteria and for a different purpose. Lease classification would be based primarily on the nature of the asset being leased and it would determine how entities recognize lease-related revenue and expense. Comments are due by 13 September 2013.
23 May 2013
Technical Line - A closer look at the new lease accounting proposal
The FASB and the IASB have issued new exposure drafts that would require lessees to recognize assets and liabilities arising from their involvement in most leases. Entities would still classify leases, but they would use different criteria for a different purpose. Lease classification would determine how entities recognize lease-related revenue and expense, as well as what lessors record on the balance sheet. Comments are due by 13 September 2013. Our Technical Line publication tells you what you need to know about the proposed changes.
16 May 2013
To the Point - Boards issue new proposal to put most leases on the balance sheet
The FASB and the IASB today issued an exposure draft that proposes requiring lessees to recognize assets and liabilities arising from their involvement in most leases. All entities would classify leases to determine how to recognize lease-related revenue and expense. Classification would also affect what lessors record on the balance sheet. Our To the Point publication tells you what you need to know about the proposal.
6 September 2012
Technical Line - Leases project on the brink of re-exposure
The FASB and the IASB have made significant changes to their 2010 exposure draft and expect to issue a revised proposal in the fourth quarter. Our Technical Line publication summarizes the Boards’ tentative decisions to revise their leases proposal and highlights some key differences between the revised proposal and current accounting.
14 June 2012
To the Point - Circling back to straight-line leases but with a twist
The FASB and the IASB decided that lessees and lessors would classify leases based primarily on the nature of the asset being leased. For lessees, some leases would have an accelerated lease expense recognition pattern and others would have a straight-line lease expense recognition pattern. Lessees would recognize all leases (other than short-term leases) on the balance sheet. Our To the Point publication describes the Boards’ latest decisions.
1 March 2012
To the Point - Boards weighing effects of putting leases on the balance sheet
The FASB and the IASB remain committed to putting leases on the balance sheet, but continue to struggle with how to recognize related lease revenue and expense. This is likely to delay a new exposure draft. Our To the Point publication summarizes what you need to know about the status of the leases project.
20 October 2011
To the Point - Operating lease accounting survives for some real estate lessors
The Boards made some significant modifications to the proposed accounting for lessors agreed to in July 2011. Our To the Point explains what you need to know about the revised approach and the Boards’ decision to allow certain lessors of real estate investment properties to continue to use operating lease accounting.
21 July 2011
To the Point - Boards to re-expose leases - a new approach for lessors selected
The Boards decided to re expose their joint leases proposal for a second time because they have made significant changes to the model they proposed last year. One of the changes decided this week was that lessors should apply a receivable and residual approach to all leases, with a few exceptions. Our To the Point publication summarizes these latest developments.
12 July 2011
Technical Line - Lessee model comes together as leases project progresses
The FASB has made significant progress in its redeliberations on the classification and measurement of financial instruments. Our Technical Line provides an overview of the decisions made to date, along with a comparison of these decisions to the earlier proposal.
19 May 2011
To the Point - A U-turn on straight-line lease expense
The Boards have decided to go back to their exposure draft approach of requiring lessees to recognize interest expense using the interest method and separately amortize the right-of-use asset (generally on a straight-line basis). This approach accelerates lease expense for today’s operating leases. Our To the Point describes the new developments.
14 April 2011
To the Point - Straightening out lease expense and other issues
The FASB and the IASB have continued to refine their proposed accounting for leases. Our To the Point summarizes what you need to know about these developments as of the end of April 2011.
31 March 2011
To the Point - A clearer picture of leases on the balance sheet
Our To the Point discusses significant changes to the joint leasing proposal as a result of FASB and IASB redeliberations.
17 February 2011
To the Point - Lease term simplified - other lease accounting changes on the horizon
Our To the Point summarizes certain changes proposed by the FASB and IASB during the redeliberation of the joint leases proposal.
1 December 2010
Comment Letter - Joint FASB/IASB proposal on leases
Our comment letter supports the Boards’ efforts to improve lease accounting. However, there are key conceptual and application issues related to the proposals in the exposure draft that must be addressed in order for these proposals to be operational.
1 September 2010
Financial Reporting Developments - Proposed accounting for leases
Our FRD outlines the principles in the FASB and IASB joint proposal on leasing and highlights some of the more significant implications of the proposed changes.
18 August 2010
Hot Topic - Proposed accounting changes for leases
Our Hot Topic summarizes the substantial changes to the accounting for leases proposed in the FASB and IASB joint leases project.
18 August 2010
Technical Line - Proposed leases guidance exposed
Substantial changes to the accounting for leases were proposed in the ED issued by the FASB and IASB on their joint leases project. This document summarizes the joint proposal.
18 June 2010
Technical Line - The joint leases project: change is coming
Our Technical Line provides an overview of the tentative decisions the Boards have reached to date on their leasing project and highlights some of the most significant changes expected to be proposed.
20 November 2009
Technical Line - Revised software revenue recognition guidance
Our Technical Line reflects the issuance of ASU 2009-14, Software (Topic 985), Certain Arrangements That Include Software Elements, a Consensus of the FASB Emerging Issues Task Force.
19 July 2009
Comment Letter - Preliminary views on leases
Our comment letter provides our views on the joint IASB/FASB Discussion Paper, Leases: Preliminary Views.
20 March 2009
Hot Topic - FASB/IASB issues discussion paper on leasing
Our Hot Topic discusses the FASB and IASB discussion paper on a proposed new accounting model that would eliminate operating leases for lessees and instead require all leases to be recorded as capital leases