FASB / IASB - Divergent paths on key aspects of lease accounting 

March 21: The FASB and the IASB, at their March 18-19 meeting to re-deliberate the proposals in their 2013 exposure drafts on lease accounting, could not agree on how lessees and lessors are to depict their leasing activities for financial reporting purposes.

Both Boards remain committed to an approach that requires on-balance sheet recognition of leases by lessees.


  • The IASB decided that lessees must apply a single lease accounting model under which all leases within scope would be treated as the purchase of an asset on a financed basis.
  • Whereas, the FASB decided that lessees must apply a dual-lease accounting model under which many leases would qualify for straight-line recognition of total lease expense without separate presentation of interest expense.

Read a March 2014 report [PDF 291 KB] prepared by KPMG LLP: Defining Issues: FASB and IASB Take Divergent Paths on Key Aspects of Lease Accounting




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