IASB to Adopt Single Model for Leases
Rather than move forward with the Financial Accounting Standards Board (“FASB”) on a dual model for leases, the International Accounting Standards Board (“IASB”) has decided to adopt a single model. The IASB recently updated in project documents to reflect its decision to abandon the dual model approach it proposed with the FASB in 2013. Citing feedback from analysts and investors, the IASB concluded that leases produce assets and debt-like liabilities for a lessee, making it easier for a single model to understand. As for the FASB, the standard-setter plans to keep its dual model. However, the IASB and FASB plan to continue to discuss the lease project jointly to minimize as many differences as possible and to explore ways to reduce the cost and complexity.
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