CFO notes in an article, that for years, some rather basic bankruptcy concepts have not applied to lease accounting. That may soon change if the FASB Board and the IASB Board finally come together on a new approach that follows common bankruptcy laws.

According the CFO story, finding the right approach has been hard. CFO quotes Bill Bosco, president of lease accounting firm Leasing 101 and consultant to at the ELFA, as saying, “The strange nature of [lease-cost] liability is that it’s a liability if it’s a going concern but not if you’re bankrupt.” Bosco added, “It’s not a debt in bankruptcy, nor does the IRS view it as debt.”

To read the entire CFO article, click here.