Blog

Today (Feb. 25) the Financial Accounting Standards Board (FASB) released ASU 2016-02, the final version of the new lease accounting standard. In the Accounting Standards Codification, this is designated Topic 842 (the prior standard, FAS 13, was designated ASC 840). The release, available on the...
February 25 2016
Several articles have been released discussing the FASB's new lease accounting standard:
 
New York Times: Post-Enron Accounting Rule Requires Companies to Report Leases
 
Wall Street Journal: New Rule to Shift Leases Onto Corporate Balance Sheets
 
Wall Street Journal (CFO blog...
February 25 2016
With the final decisions made, and just waiting for the official final document, what is the new regime for lease accounting? Most importantly, what is changing from the current standards?
 
US GAAP: FAS 13/ASC 840 to ASC 842
 
Lessee leasing: The most significant change, of course, is that all...
December 14 2015
As I think most observers expected, the FASB at today's meeting set the implementation deadline as fiscal years starting after Dec. 15, 2018, i.e., calendar year 2019. This matches the IASB decision from last month. The FASB will permit early implementation; they seem to think it most likely that...
November 11 2015
At the IASB's October 20 meeting, the board had its final deliberations on the new lease accounting standard. The headline decision is that the board decided that the new standard would be required starting with fiscal years beginning on or after January 1, 2019. Earlier implementation is permitted...
October 21 2015
The IASB has updated their project schedule with a target date for release of the new lease accounting standard: sometime in the second half of 2015. (The FASB's Current Technical Plan page has had a gee-whiz makeover that looks snazzy but provides no useful information about dates.)
At the...
January 09 2015
In the Nov. 10, 2014, issue of the Wall Street Journal, congressmen Brad Sherman and Peter King attacked the planned new lease accounting standard, claiming that it will "fabricate trillions in new debt" and thereby crush the economy. They reference a study that foresees a loss of at least 190,000...
November 18 2014
The joint IASB/FASB meeting of July 22-24, 2014, included leases on its agenda (on July 23). There were two main topics of conversation: sale/leaseback transactions and lessor disclosure requirements. The IASB summary is available online, with more discussion detail provided by Deloitte's IASPlus....
August 08 2014
Since it seems highly likely that Type B lease accounting will survive for current lessee operating leases in the U.S. (with perhaps a few leases at the margins moving in and out of such treatment), I thought it might be worthwhile to look in more detail at some examples of how Type B accounting...
July 02 2014
The FASB/IASB joint meeting for June was held June 17-19, 2014. The boards discussed subleases, lessee balance sheet presentation, and cash flow statement presentation. Discussions were made in the context of  the FASB's tentative decision to permit two different types of lessee presentation (Type...
July 01 2014
The FASB/IASB joint meeting on May 20-22, 2014, reached the following additional decisions for the new lease accounting standard, reviewing the Revised Exposure Draft (RED) and redeliberating on user reactions:

Allocating consideration between lease and non-lease components should be based on...
June 09 2014
(See prior post for information on lessees and the general redeliberation process) Lessor accounting update:
In response to a large chorus of, "It ain't broke, don't fix it," the boards in March decided that lessor accounting should be generally left unchanged. How many models? Both boards agreed...
May 19 2014
The FASB and IASB are underway with their redeliberations on the lease accounting standard, in the wake of the 641 letters received, plus additional outreach the staff and boards have undertaken since releasing the 2013 Exposure Draft. The deliberations are taking somewhat different turns for...
May 18 2014
On April 10, the FASB met for a final go/no-go decision on the revised exposure draft (RED) for the new lease accounting standard. The board members were asked, as part of the FASB's standard due process, whether they have concerns about financial reporting complexity in the draft. Three members...
April 25 2014
They all came in a flood at the last minute. Comment letters to the proposed new lease accounting standard were due September 13; while a few are trickling in late (including from such major companies as General Electric and Société Générale), the final count will probably end up being very close...
September 23 2013
Well, my plans for a step by step review of the Revised Exposure Draft were overrun by life this summer. A variety of events left me with little time for blogging. We're now just two days away from the end of the comment period, so I'm going to post a summary that is basically what we've provided...
September 11 2013
At long last, the Revised Exposure Draft (RED) for the proposed new lease accounting standard has been released by the IASB and FASB. A press release is available here; the actual RED is available from either the IASB or FASB.
The public comment period lasts until Sep. 13, 2013. Comments may be...
May 16 2013
The slow march to a new lease accounting standard has been drawn out yet again. On January 29 & 30, the FASB and IASB met to discuss issues that had arisen during the drafting process for the Revised Exposure Draft (RED). Details of those issues are below, but the most important news out of the...
February 14 2013
Opposition to the Revised Exposure Draft (RED) of the lease accounting standard is starting to build. Asset Finance International is reporting that the FASB's Investors Technical Advisory Committee (ITAC), at a meeting on July 24, unanimously disagreed with the boards' new approach to lease...
September 17 2012
On July 17, the IASB & FASB met to make their last decisions before releasing a revised exposure draft (RED) for the new lease accounting standard. The following decisions were reached (according to meeting notes posted at IASPlus):
Lessee accounting
Statement of financial position (balance...
July 19 2012