Peeling away financial reporting issues one layer at a time

Lease Accounting: Getting Ready for Fundamental Change

The FASB and IASB began a joint project on lease accounting in 2007. In 2013, they each issued a second round of exposure drafts, but continued to deliberate controversial elements practically right up to the issue dates of the final standards.

Despite the many course corrections that have occurred, the boards key objective, to bring most leases on balance sheet, has been met. The questions that my workshop will help you answer, is how that will happen, and how best to manage the transition to the new standard.

Overview and Background

  • History of the lease accounting project
  • Scope — definition of a lease
  • Effective date and transition alternatives

Lessees: Key Provisions

  • Initial measurement and balance sheet presentation
  • Variable payments
  • Subsequent measurement and classification criteria
  • Reassessments and modifications
  • Leveraged and synthetic leases
  • Disclosures

Additional Considerations for Lessors

Differences between IFRS and GAAP