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
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