A proposed compromise that would let companies record leases in two different ways as part of a larger converged standard on lease accounting appears to be unraveling. Financial Accounting Standards Board Chairman Russell Golden said the compromise -- which divides leases in "type A" and "type B" categories -- is problematic because of the managerial discretion involved in determining which lease falls into which category. FASB and the International Accounting Standards Board will begin negotiations on the standard with the goal of finalizing a rule at the end of the first quarter.

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