Category Archives: Approach 1

FASB and IASB Lease Accounting “Divergence.”

FASB/IASB lease accounting “Divergence.”  Far from converging, the FASB and IASB have decided to take different routes concerning lease accounting. While both boards decided to capitalize all leases on the balance sheet, the FASB decided to allow companies to use … Continue reading

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2013 Lease Exposure Draft: Type A Leases

In this post I will explain Type A leases in detail from the lessee perspective. We will discuss how to calculate the initial and subsequent values of the lease liability and the initial and subsequent values of the Right of … Continue reading

Posted in Approach 1, Lease Liability, New Lease Accounting Rules, Present Value of Minimum Lease Payments, ROU Asset, Type A Lease | Tagged | Leave a comment

It’s Finally Here…

Post by George Azih: The long awaited Exposure Draft on Lease Accounting was issued this morning (May 16th) by the FASB and IASB. It is 343 pages long, so I’ve got a lot of reading ahead of me. You can … Continue reading

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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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