Monthly Archives: June 2012

To Summarize

As I noted in a prior post, the FASB and IASB have made a decision on a new approach to account for leases. Leases of land and buildings would effectively have straight-line expense on the income statement (Approach 2), while leases … Continue reading

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The Decision…

At a meeting in London on June 13, 2012, the U.S. Financial Accounting Standards Board and International Accounting Standards Board made a decision on a new approach to account for leases. Under consideration was Approach 1 (previously called Approach A), … Continue reading

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Approach 2: – Straight-Line Expense: ROU Asset and Lease Liability

In this post, I’d like to get you acclimated to Approach 2, which, in addition to Approach 1, is being considered by the FASB and IASB as a model for lease accounting for lessees going forward.  I addressed Approach 1 … Continue reading

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Approach 1 – Accelerated Expense: Part B: Lease Liability

In a previous post, I showed you how to calculate the Right of Use Asset under Approach 1 of the two approaches under consideration by the FASB and the IASB to become the model for lessee accounting for leases. The … Continue reading

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Approach 1 – Accelerated Expense: Part A: ROU Asset

Approach 1 suggests that when a lease is signed, the lessor grants the lessee the right to use an underlying asset. This is called the ROU (right of use) asset. In Approach 1, this asset is accounted for as a … Continue reading

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