Global

Details

  • Service: Audit, IFRS
  • Date: 3/24/2014

Paths diverge on lease accounting 


Full convergence on lease accounting seems unlikely after the IASB and FASB disagreed on key aspects of the proposals in their March meeting.

Although both Boards remain committed to on-balance sheet recognition of leases by lessees, they could not agree on exactly how lessee accounting should work. The IASB favoured a single model for all leases but the FASB preferred a dual model that would allow straight-line recognition of total lease expense in many cases.


In other areas, the Boards agreed to eliminate or simplify many aspects of their earlier proposals. Proposed changes to lessor accounting have been scaled back, and enhanced exemptions for lessees would reduce implementation costs.

IFRS Newsletter: Leases - issue 14, March 2014

Feature image
This edition of IFRS Newsletter: Leases provides an overview of the IASB and FASB discussions of the leases project in March 2014.

© 2014 KPMG IFRG Limited is a UK company, limited by guarantee. All rights reserved. KPMG IFRG Limited, registered in England No 5253019. Registered office: 8 Salisbury Square, London, EC4Y 8BB

 

Share this

Share this

IFRS Hot Topics

IFRS topics
Learn about the latest IFRS developments in insurance, leases, revenue, financial instruments and banking.