In an email message to monitordaily, lease accounting expert Bill Bosco shared his initial impression of the FASB and IASB exposure drafts and noted “it’s not over ’til it’s over.”

Although he has not read the exposure drafts completely, Bosco preliminarily pointed out that “three of the seven FASB board members dissented and there will be a new member appointed to replace Leslie Seidman — the new member’s vote will be the deciding vote.”

Bosco added, “There are two dissenters on the IASB board, but more importantly, EFRAG, the advisory body to the European Union regarding accounting rules, is not in favor of the ED. For a new standard to be accepted in Europe, the European Union has to ratify it.”

“I expect a large number of negative comment letters from lessees, lenders, credit analysts and lessors. In my opinion the proposed ED will need to be improved in ways that the ELFA has been suggesting in order for it to be accepted by the majority of stakeholders,” Bosco explained.

Previously on monitordaily: IASB, FASB Propose Changes to Lease Accounting, May 16, 2013

For additional insights from Bosco on the lease accounting project click here.