CFO.com notes in a article today (11/3/11)that the lease accounting debate rages on as FASB and IASB pore over nearly 800 public comment letters that question proposed new leasing standards.

CFO said among the topics continuing to grab plenty of attention is the “right-of-use” asset concept, which, if approved, would require companies to capitalize operating leases they could traditionally keep off their balance sheets, such as those for real estate and equipment. The boards are also modifying their treatment of lease-renewal options, short-term leases, and variable lease payments.

Leasing industry expert Bill Bosco, a member of the IASB working group, comments in the CFO article on abandoning the use of a straight-line average rent expense over a contract’s term in favor of a system requiring companies to front-load their rent expense on the income statement by splitting it into an amortization expense and an interest expense. This aspect of the standard, Bosco says, does not reflect the reality of most leases.

To read the CFO.com article click here.