FASB lease accounting update.
On July 21, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) announced they would re-expose their recently proposed lease accounting standard changes. This decision came as both the FASB and IASB were flooded with hundreds of comment letters discussing concerns with the proposed lease accounting revisions. The proposed rules--which are different from current regulations, which allow leases to be considered operating expenses not appearing on balance sheets--would require businesses to recognize assets and liabilities arising from lease contracts. These proposed changes could lead to a bloated balance sheet that--resulting in a host of potential problems.
FASB Chairman, Leslie Seidman, stated that there will be several changes to the standard, and that the Boards will reintroduce a revised proposal for public comment at a later date this year. This version will include new revisions from the original proposal that was introduced last year.
IREM has participated in the past comment period and has submitted three separate letters to FASB and IASB detailing the issues that will arise from these new lease accounting changes. IREM legislative staff will continue to monitor this issue closely, and will take full advantage of the next opportunity to submit comments.
by IREM Legislative Staff
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|Title Annotation:||IN SESSION; Financial Accounting Standards Board; International Accounting Standards Board|
|Comment:||FASB lease accounting update.(IN SESSION)(Financial Accounting Standards Board)(International Accounting Standards Board)|
|Publication:||Journal of Property Management|
|Article Type:||Brief article|
|Date:||Nov 1, 2011|
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