FASB and IASB rescind 2-model approach for lease accounting

05/25/2011 | Compliance Week

The Financial Accounting Standards Board and the International Accounting Standards Board decided they won't establish a two-model approach for lease accounting for lessees. Instead, they are sticking to their original, single-model proposal. The boards originally proposed that all leases be treated as financing transactions. Companies protested that certain leases should be treated as "other-than-finance" leases, with a profit and loss recognition pattern similar to operating leases, so the boards agreed to consider a two-model approach. Read this AICPA Accounting and Auditing Brief on the FASB/IASB Lease Accounting Project.

View Full Article in:

Compliance Week