GASB Proposes Single Approach for Lease Reporting
The Governmental Accounting Standards Board (“GASB”) has issued a proposal that would create a single model for state and local governments to report leases on their financial statements. The approach would be based on the notion that leases are financings of the right to use an underlying asset. Exceptions like short-term leases and financed purchases are given in the draft guidance, but the proposed Statement would cover lease contracts for nonfinancial assets such as vehicles, heavy equipment and buildings. Grants, donated assets and leases of intangible assets, however, would be excluded from the guidance. Per the Exposure Draft, Leases , a lessee government. Read More.
Lawmakers Want SEC to Take Cautious Approach to IFRS
Concerned that U.S. adoption of IFRS would do more harm than good for investors, members of the Congressional Caucus on CPAs and Accountants recently expressed their sentiments to U.S. Securities and Exchange Commission’s (“SEC”) Mary Jo White. In a letter to the SEC Chair, the lawmakers asked White to be cautious in the agency’s convergence projects with the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”), as well as incorporate public comment before making a decision. In response to the lawmakers’ letter, a spokeswoman for the SEC declined to comment. Since becoming SEC Chair last year, White. Read More.
Topics: Congressional Caucus on CPAs and Accountants, Convergence, Financial Accounting Foundation "FAF", Financial Accounting Standards Board "FASB", International Accounting Standards Board "IASB", International Financial Reporting Standards "IFRS", lease accounting, Mary Jo White, U.S. Securities and Exchange Commission "SEC"
FASB and IASB Seek Lease Standards Publication Next Year
Hoping to publish final standards late next year, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) will restart discussions this fall on their lease accounting project. It is anticipated that the final standards will be based on FASB’s Proposed Accounting Standards Update No. 2013-270, Leases (Topic 842), and the IASB’s Exposure Draft No. 2013-6, Leases. Both proposals were published in 2013. Before completing work on their project, the FASB and IASB must resolve several disagreements on proposed changes to accounting in U.S. GAAP and International Financial Reporting Standards. Such disagreements include how to handle accounting for. Read More.