FASB, IASB propose new converged lease accounting standard

05/17/2013 | Wall Street Journal, The

A proposed converged lease-accounting standard introduced by the Financial Accounting Standards Board and the International Accounting Standards Board would require companies to add the value of their lease obligations to their balance sheets. The proposed standard would set up a two-track system in which the costs of leasing real estate would be recognized evenly over the term of the lease, while costs of leasing other items would be more front-loaded. Critics said the standard would increase debt held on companies' balance sheets by hundreds of billions of dollars.

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