Boards to re-expose leases - a new approach for lessors selected
The FASB and the IASB are inviting comments on their latest proposals for joint leases, as questions remain about the receivable and residual approach writes Ernst & Young's John McCormack.

Lease accounting: piecemeal approach to changes continues
Some more information and detail on the proposals to change lease accounting emerged last month, writes Ronan Doyle, a partner at PriceWaterhouseCoopers specialising in aviation finance. The two areas covered were the circumstances where profit can be recognised by lessors on entering a lease and dealing with uncertainties.

Overhaul of Lease Accounting to bring fundamental changes to reported Performance and Leverage
Sir David Tweedie, Chairman of the International Accounting Standards Board once remarked that one of his lifelong ambitions was to fl y on an airplane that appeared on an airline’s Balance Sheet. Recently announced proposals under both IFRS and US GAAP to significantly change the accounting for leases bring this ambition closer to reality.

Top auditors on capital issues and new standards
Last year, the FASB and IASB proposed changes that would radically alter income recognition and the balance sheet treatment of operating leases - changes that were immediately criticised on the grounds that they could make financial statements less rather than more informative. A year later, refined proposals have been forthcoming, and in this issue, we examine what has been happening.