Trade Groups Make Final Plea for Leases Standard Exemption
As the Financial Accounting Standards Board (“FASB”) prepares its lease accounting standard for publication, several trade groups made a last-minute attempt to have private companies exempt from the upcoming guidance. In a letter last month, the groups expressed concern that the final standard will increase complexity and not meet the needs of private business investors. The groups also believe that the extensive changes to lease accounting will hurt private companies, and cap their chances of borrowing or raising capital.
The FASB has responded to several comment letters in relation to proposed Accounting Standards Update (ASU) No. 2013-270, Leases (Topic 842). In regard to the trade groups’ letter, an FASB spokeswoman said the accounting board will take the comments into consideration like all comment letters it receives. However, no future meetings are planned for the lease accounting project, and the FASB plans to issue the final standard on February 25th.