According to an article that appeared on Accounting Today’s website, FASB chair Leslie Seidman noted with regard to the current status and likely future time line for the remaining parts of the convergence agenda with the IASB, the boards are ready to release a second converged exposure draft on the leasing project in the next few months.

Seidman is quoted by Accounting Today as saying, “We are substantially converged on the leasing proposal from top to bottom.”

Accounting Today noted that the second exposure draft would require that all leases go on the balance sheet of the lessees, unless they are under one year of duration. It also would recognize leases in one of two categories: as purchase or financing transactions, which would use the asset financing model, with the lease asset amortized, or “more like a service or rental,” where a significant amount of the value or utility of the asset would not be transferred, and the pattern of income statement recognition would be straight-line.

To read the Accounting Today article click here.