Rule changes would put leased equipment back on books

The Financial Accounting Standards Board and the International Accounting Standards Board are working on a proposal that would change the way assets and liabilities under lease contracts are recognized. The changes could prove problematic for some firms. "Instead of taking operating lease treatment, where another party owns the asset and puts the asset on its books, and the lessee just pays a monthly expense, the lessee would have to recognize those assets on their balance sheet," said Ralph Petta, ELFA's vice president of research and industry services.

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