News — Lease Accounting
CFO: Why Bankruptcy Should Matter in Lease Accounting
CFO notes in an article today (5/16/12) that for years, some rather basic bankruptcy concepts have not applied to lease accounting. That may soon change if the FASB and IASB boards come together on a new approach that follows common bankruptcy laws.
Read more...Date Posted May 16, 2012
ELFA Issues Lease Accounting Project Update
The ELFA issued a lease accounting project update, noting that at the February meetings, the FASB/IASB could not agree on any of the three lessee accounting approaches. After the meeting, the Boards added a fourth approach that the ELFA has been recommending from the start of the leases project.
Read more...Date Posted April 26, 2012
CHP Publishes Lease Accounting White Paper
CHP Consulting, a supplier of asset and motor finance software and consultancy services, said it has published the second in a series of pieces on the IASB and FASB’s overhaul of lease accounting.
Read more...Date Posted March 26, 2012
Grant Thornton Backs Alternative Lease Accounting Models
Accounting Today reported that Grant Thornton has released a new paper calling for an overhaul in the current thinking of the FASB and IASB on lease accounting standards, instead advocating the use of two different lease accounting models.
Read more...Date Posted March 12, 2012
FASB, IASB Vote Differing Approaches For Lessees
Accounting Today reported that at a meeting this week, the boards of the FASB and IASB voted for differing approaches on the leasing standards project involving income statement changes for lessees.
Read more...Date Posted March 2, 2012
CFO: SEC Seen Mulling Weaker Role for FASB
CFO reported that a subtle shift in word usage by James Kroeker, the SEC’s chief accountant, may signal the possibility of an end to the “special relationship” between the FASB and the IASB, citing a New York-based adviser of the IASB.
Read more...Date Posted February 23, 2012
CFO: FASB Change Could Trim Intangibles Tests
CFO reports a new proposal from the Financial Accounting Standards Board may save companies some third-party costs involving gauging the fair value of intangible assets.
Read more...Date Posted February 6, 2012
IASB Chief Says ‘Not Set Out to Kill the Leasing Industry’
IASB chairman Hans Hoogervorst noted in a speech given at a Ernst & Young seminar that the subject of lease accounting is a difficult area, but one where improvements are needed. “Despite what you may hear, we have not set out to kill the leasing industry.”
Read more...Date Posted January 25, 2012
FASB Awaits Decision on Structure of New Council
Accounting Today reported that FASB and its parent organization, FAF, are holding a series of meetings with private company representatives to talk about FAF’s proposal to create a new council.
Read more...Date Posted January 16, 2012
FASB, IASB Chiefs Agree New Convergence Model Needed
The Journal of Accountancy reported the heads of the U.S. FASB and IASB who have been working to resolve standards differences agree that their current convergence process should be replaced by one that is more manageable and effective.
Read more...Date Posted December 7, 2011
ELFA: Lease Accounting Proposal Could Negatively Impact Economy
A proposal to change how leases are accounted for on corporate balance sheets could have a widespread, detrimental impact on the U.S. economy, triggering a $10 billion reduction in GDP and 60,000 fewer jobs by 2016, the ELFA announced, citing a new study conducted by information and analysis provider IHS.
Read more...Date Posted December 7, 2011
BofA Exec Named Chairman of FASB Advisory Council
The Financial Accounting Foundation announced that Charles H. Noski, current vice chairman and former CFO of Bank of America, was appointed chairman of FASB’s advisory council for a one-year term.
Read more...Date Posted December 6, 2011
ELFA to Announce Results of Lease Accounting Impact Study
The ELFA and the Equipment Leasing & Finance Foundation said they will hold a press conference call on December 7 to announce the results of a study on the impact of proposed lease accounting changes on the U.S. economy.
Read more...Date Posted December 5, 2011
IASB, FASB Publish Revised Proposal for Revenue Recognition
The IASB and FASB issued a revised draft standard for public comment to improve and converge the financial reporting requirements of IFRS and GAAP for revenue and certain related costs from contracts with customers.
Read more...Date Posted November 16, 2011
CFO: New Leasing Proposals Continue to Draw Heat
CFO.com notes in an article, which includes comments by leasing industry expert Bill Bosco, the lease accounting debate rages on as FASB and IASB pore over nearly 800 public comment letters that question proposed new leasing standards.
Read more...Date Posted November 3, 2011
Grant Thornton Survey: 54% Unaware of Lease Accounting Changes
According to research from Grant Thornton’s International Business Report, 54% of global businesses are not aware of, and are therefore unprepared for, one the most significant global accounting changes in the past decade: the virtual elimination of off-balance sheet leases.
Read more...Date Posted October 28, 2011
Ross Professor Says U.S. On Way to Adopting Accounting ‘Hybrid’
In an article that appeared on the University of Michigan Ross School of Business website, Ross professor Cathy Shakespeare thinks the U.S. is on course to adopt a hybrid way of endorsing international accounting standards.
Read more...Date Posted October 17, 2011
FASB’s Leasing Convergence Timeline Moves to Next Year
Accounting Today reported that FASB board chairman Leslie Seidman said in an interview that re-deliberation discussions with the IASB on the leasing project would continue through late this fall with a goal of trying to conclude leasing in 2012.
Read more...Date Posted September 22, 2011
CFO: Accountants Want Companies to Have Choice in Adopting IFRS
CFO reports the American Institute of Certified Public Accountants has proposed that U.S.-based multinational companies should have the option to adopt international financial reporting standards.
Read more...Date Posted August 18, 2011
Bosco: Lease Accounting Project Update
Equipment leasing expert and industry consultant Bill Bosco provides his most recent update to monitordaily with in-depth commentary on the latest developments in the continuing debate on lease accounting standards.
Read more...Date Posted August 5, 2011
CFO: Private-Company GAAP Heats Up
In a post on its website, CFO reported that accountants and finance executives are lobbying hard for the Financial Accounting Foundation to appoint a separate board, independent of the FASB, to tailor accounting standards for private companies.
Read more...Date Posted August 4, 2011
ELFA Applauds Decision to Re-Expose Lease Accounting Standard
ELFA president William G. Sutton released a statement praising the decision by the FASB and IASB to re-expose their revised proposals for a common leasing standard.
Read more...Date Posted July 26, 2011
IASB, FASB Announce Intention to Re-Expose Leasing Proposals
The IASB and FASB announced their intention to re-expose their revised proposals for a common leasing standard. The boards said decisions taken to date were sufficiently different from those published in the exposure draft to warrant re-exposure.
Read more...Date Posted July 25, 2011
Ecologic Lessee Services Offers IFRS Info for Equipment Lessees
Ecologic Lessee Services, a global provider of services to corporate and nonprofit equipment lessees, said it has published a free white paper to help lessees prepare for the IFRS lease accounting changes.
Read more...Date Posted July 19, 2011
CFO: Small Companies Criticize IFRS Transition
CFO.com reports that a panel of CFOs and finance executives from small public companies said at an SEC roundtable that a possible switch to International Financial Reporting Standards would be “painful and costly.”
Read more...Date Posted July 15, 2011
Tweedie to Retire Before IASB/FASB Convergence Accomplished
IASB head Sir David Tweedie is retiring after ten years and before realizing his goal of converging IASB and FASB rules. Hans Hoogervorst, a Dutch financial regulator, will assume the IASB post July 1, according to The Economist.
Read more...Date Posted June 28, 2011
Accounting Article Focuses on Lessors, Uses Monitor 100 Data
Using information from the Monitor 100, a recent article in Accounting Horizons examines the impact of impending lease accounting changes on lessors. The study analyzes 57 of the 100 largest equipment lessors in the U.S. market.
Read more...Date Posted June 27, 2011
Bosco: Lease Accounting Project Update as of June 21, 2011
Equipment leasing expert and industry consultant Bill Bosco provides his most recent update to monitordaily with in-depth commentary on the latest developments in the continuing debate on lease accounting standards.
Read more...Date Posted June 22, 2011
IASB and FASB to Re-Expose Revenue Recognition Proposals
The International Accounting Standards Board (IASB) and the US-based Financial Accounting Standards Board (FASB) announced their agreement to re-expose their revised proposals for a common revenue recognition standard.
Read more...Date Posted June 17, 2011
Bosco Meets With IASB Board/Staff, Provides Update
After meeting with several IASB board and staff members, industry expert and consultant Bill Bosco provided a revised update including clarifications, which Bosco says are better news for the industry.
Read more...Date Posted May 25, 2011
IASB/FASB: Short-Term Lease Capitalization ‘Back on the Table’
In a commentary on a recent joint-board meeting held by IASB and FASB, leasing industry expert Bill Bosco’s notes the Boards’ latest deliberations indicate a reversal and short-term lease capitalization is “back on the table.”
Read more...Date Posted May 23, 2011
IASB, FASB Complete Fair Value Project
The IASB and FASB last week issued new guidance on fair value measurement and disclosure requirements for IFRS and U.S. GAAP. The guidance completes a major project of the boards’ joint work to improve IFRS and U.S. GAAP and to bring about their convergence.
Read more...Date Posted May 16, 2011
FASB, IASB Announce Timetable Extension on Convergence Projects
The heads of FASB and IASB said they have decided to extend the timetable for a few additional months to complete joint convergence projects on revenue recognition, leases, financial instruments and insurance.
Read more...Date Posted April 15, 2011
FASB Chairman: No Retreat on Leases
In part four of a series of interviews with FASB chairman Leslie Seidman, the Journal of Accountancy provides insights into why the FASB board’s revised approach to lease accounting will not be a return to business as usual.
Read more...Date Posted April 8, 2011
IDS Announces Next Industry-Wide Lease Accounting Webinar
International Decision Systems announced the second webinar in a series of lease accounting briefings to be held April 6, 2011. The webinar aims to update participants on any new decisions by the FASB and IASB since IDS’s last briefing.
Read more...Date Posted March 28, 2011
White Paper: FASB, IASB Reconsider Lease Accounting Rules
In a white paper, business advisory firm SolomonEdwardsGroup notes that after proposing broad sweeping changes last fall to lease accounting rules, the FASB and IASB boards appear to have retreated on certain elements.
Read more...Date Posted March 22, 2011
PwC Survey: $1.2 Trillion in Lease Obligations Affected by IFRS
A recently released survey by PwC finds companies bracing for major changes in financial reporting with $1.2 trillion in gross lease obligations estimated to be affected. The survey notes that 80% expect IFRS to be adopted in the U.S.
Read more...Date Posted March 21, 2011
Lease Accounting Project Takes a Turn for the Better
The following is an excerpt from an article, authored by leasing industry expert and consultant Bill Bosco, that provides insight into how “overwhelming negative feedback” may cause the accounting boards (FASB and IASB) to change direction on the proposed new leasing accounting standards: As that noted leasing expert Yogi Berra said, “It’s not over ’till [...]
Read more...Date Posted March 5, 2011
Survey: Just 7% of Executives Prepared for Lease Accounting Changes
According to a recent Deloitte survey just 7% of executives believe their companies are extremely or very prepared to comply with new lease accounting standards proposed by the Financial Accounting Standards Board (FASB). As early as June 2011, the new proposed draft standards distributed in August 2010 may be finalized. To comply, lessees (and possibly [...]
Read more...Date Posted February 17, 2011
CHP Publishes Technology White Paper on IASB Exposure Draft
CHP Consulting has published its whitepaper on the IASB’s Exposure Draft with a focus on technical and accounting solutions. Entitled How lessors are meeting new challenges using futureproof technology, the white paper addresses what CHP Consulting considers to be the three principal systems issues raised by the proposed changes to lease accounting set out in [...]
Read more...Date Posted February 7, 2011
