Get ready for new lease accounting rules
Abstract: As part of their continuing convergence project, in 2010 the Financial Accounting Standards Board and International Accounting Standards Board issued a joint proposal for overhauling lease accounting standards. The proposed changes are expected to have a big impact on companies engaged in significant leasing activities — particularly those with off-balance-sheet “operating” leases. This article summarizes these changes. A sidebar discusses the proposed requirement to account separately for distinct service components of a lease.