IREM FASB Update

FASB Lease Accounting Update by IREM Legislative Staff

Source: irem.org

On July 21, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) announced they would re-expose their recently proposed lease accounting standard changes.  This decision came as both FASB and IASB were flooded with hundreds of comment letters discussing concerns with the proposed lease accounting revisions.  The proposed rules would require businesses to recognize assets and liabilities arising from lease contracts which is different from current regulations that allow leases to be considered operating expenses which do not appear on balance sheets.  This could lead to a bloated balance sheet that would result in a host of potential problems.

Read the full update on the Top Legislative News page