Boards Move Closer to Completing Leases Project
With the decisions made at their December 2014 and January 2015 meetings, the Financial Accounting Standards Board and the International Accounting Standards Board are nearing completion of redeliberations on the leases project. At the December 2014 meeting, the boards tentatively agreed on the definition of a lease. The boards decided against adding an additional requirement to their proposed definition and are moving forward with the definition decided on at their October 2014 meeting. At the January 2015 meeting, the boards discussed lessee disclosure requirements. Although converged decisions were not achieved, the boards reaffirmed their objectives for lessee disclosures from their 2013 proposal.
As redeliberations wind down, companies should evaluate their contracts and determine the potential impact of the new standard on their financial statements. The boards still have a few more issues to redeliberate, but they continue to work toward their goal of issuing a final standard by the end of 2015.
This article provides more detailed information about the decisions reached by the boards at their December and January meetings.