In a letter to Russell G. Golden, chairman of FASB and Hans Hoogervorst, chairman of the IASB, Stephen J. Cosgrove, chairman Committee on Corporate Reporting, Financial Executives International addresses many of the issues that will be discussed at the upcoming joint meeting of the Boards on March 18-19, 2014 with regard to the lease accounting project.

Cosgrove writes that the issue of how to account for operating leases in the new standard is a pivotal issue that likely will determine the success or failure of the standard in becoming generally accepted worldwide. “In our letter dated September 17, 2013, we proposed an approach that would display operating lease obligations on the balance sheet in a manner that is simple, transparent and cost-effective to apply (the display approach). At this critical juncture in the process, we believe that it is important to explain, in our own words, why that is the best approach,” Cosgrove said.

FEI is an international organization of 15,000 members, including chief financial officers, controllers, treasurers, tax executives and other senior financial executives. CCR is a technical committee of FEI that reviews and responds to research studies, statements, pronouncements, pending legislation, proposals and other documents issued by domestic and international agencies and organizations.

To read the entire letter (PDF) click here.