Update on Accounting for Leases

Leasing is popular for a couple of reasons, its tax advantages (entire lease payment is tax deductible under an operating lease) and its off-balance sheet financing (under an operating lease). The FASB and ISAB agreed to undertake a joint convergence project in December 2006. After release of the first exposure draft in 2010, comment letters caused the boards to revise their original model. A second exposure draft has been scheduled for release by the end of the first quarter of 2013. This course will review the most up-to-date exposure draft, comment letters, and tentative conclusions made by the boards afterwards. If a new ASC Update or IFRS standard is released, the course will be revised to center around such releases. Regardless of the final release of such documents, CPAs need to be prepared to address new treatments for leases, including not just property and real estate leases.