Close
Authorization
Login:
Password:

Forgot your password?
Register
Enter Registration
GAAP.RUNewsRulemakers Plan Global Overhaul of Lease Accounting

Rulemakers Plan Global Overhaul of Lease Accounting

Author: Emily Chasan

Publication date: 16 August 2010

Traditionally, accounting rules have given companies a lot of leeway in how they record leases for assets ranging from store locations and restaurant equipment to airplanes and machinery. As a result, only certain types of leases appear on the balance sheet, while a majority of a company’s leases can often be kept off the balance sheet and hidden from an investors’ view.

U.S. and international accounting rule makers (the Financial Accounting Standards Board – FASB and the International Accounting Standards Board - IASB) are planning to propose an overhaul of lease accounting as soon as Tuesday, in a move expected to affect some $1.2 trillion in leased assets.