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. Read More.
Standard Setters Still at Odds over Lease Project
At their July 23rd joint meeting, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) resumed efforts to converge U.S. GAAP and IFRS. In particular, the top focus was FASB’s Proposed Accounting Standards Update (ASU) No. 2013-270, Leases (Topic 842), and IASB’s Exposure Draft (ED) No. 2013-6, Leases. Conflicted on recognizing the gains for sale-leaseback transactions, the boards continue to have opposing attitudes toward their lease accounting project. During the meeting, FASB agreed to allow sellers of assets to recognize the full gain from the time of the transaction. On the conflicting end, IASB agreed to let. Read More.