The Financial Accounting Standards Board and the International Accounting Standards Board will issue a new exposure draft on lease accounting as early as December 2011, and it is critical that all interested parties comment on the proposed changes, according to members of FASB and IASB who addressed the Equipment Leasing and Finance Association’s 2011 Lease and Finance Accountants Conference this week in Dallas.

FASB Member Daryl Buck and IASB Member Prabhakar (“PK”) Kalavacherla discussed the latest updates on the convergence of accounting standards and the implications for the leasing and finance industry at ELFA’s three-day annual conference. The board members underscored that it is essential that stakeholders with real-world experience provide feedback on the forthcoming exposure draft. The proposed lease accounting changes will have serious consequences for both lessees and lessors regarding how they account for and report lease transactions.The new standard will impact virtually every company in the United States.

“ELFA applauds the decision by the FASB and IASB to re-expose their revised proposals for a common leasing standard,” said William G. Sutton, ELFA president and CEO. “Leases account for hundreds of billions of dollars in transactions annually throughout the global economy. It is essential that the Boards carefully consider comprehensive public input and comment before finalizing their proposal to ensure a workable lease accounting standard.”