PHILADELPHIA--(BUSINESS WIRE)--The Financial Accounting Standards Board (FASB) and its international counterpart, the International Accounting Standards Board (IASB) continue to redeliberate some of the more complex and controversial aspects of the lease accounting exposure draft. After proposing broad sweeping changes last fall to lease accounting rules, the Boards appear to have retreated on certain elements.
“I think the Boards have heard the respondents’ feedback loud and clear: reduce the complexity and reliance on projections. Regardless, all leases will still be coming onto balance sheets. Thus, it is still highly appropriate to get the planning process underway,” comments Wayne Wetterlund, lease accounting expert in SolomonEdwardsGroup’s Technical Accounting & Regulatory Advisory Practice. “Every organization that is party to a lease contract will be impacted by this proposal.”
In response to these updates, SolomonEdwardsGroup today announced the release of its newest white paper, “Compliance Focus: The New World of Lease Accounting” (available on their website www.solomonedwards.com). The paper urges companies to take note due to the probable retrospective application of these changes, which will require companies to follow the new lease reporting guidelines up to three years prior to the 2014 expected effective date.
Beyond accounting, the newly anticipated standards expected under the convergence of US GAAP and IFRS will necessitate substantial lead time to study the potential impact on business operations, human resources, technology and the overall time and cost needed to achieve compliance.
Wetterlund adds, “For thirty years, lease accounting standards have remained unchanged. This exposure draft will greatly alter the reporting activities of companies in every industry.”
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Our Technical Accounting & Regulatory Advisory professionals work with our clients to meet their compliance requirements and business objectives. Our team serves a global client base with regulatory compliance, financial reporting and consultations on complex accounting matters.