NOV 19, 2013 - 6:25 am
In a Wall Street Journal blog, senior editor Emily Chasan reports that a proposed compromise on how to record leased assets appears to be falling apart as investors and companies have raised concerns it’s too complex.
Chasan notes that rule makers are set to begin their latest round of deliberations on the lease accounting overhaul this week and expect to have a new rule ready by the end of the first quarter.
Hans Hoogervorst, chairman of the IASB is quoted as saying at a conference, “The last decisions here are going to be very tricky.”
In a related story that appeared on The Economist Newspaper Limited, the authors note that by turning lease payments into a lump-sum liability and putting that on the balance sheet, the new rules will also remove those installments from the firm’s EBITDA, which is the most widely watched measure of a company’s underlying profitability.
To read the Wall Street Journal post (subscription required) click here.
To read a related article that appeared on The Economist Newspaper click here.
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