Public consultation on a future standard on lease accounting
The IASB and the FASB issued a public discussion on lease accounting by publishing their preliminary views in a joint Discussion Paper. The Discussion Paper Leases: Preliminary Views was a response to concerns raised by investors and other users of financial statements
regarding the treatment of lease contracts under International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles (GAAP).
The different accounting treatment of finance and operating leases had given rise to various problems. The discussion paper discussed a possible new approach to lease accounting. It proposed that lease accounting should be based on the principle that all leases gave rise to liabilities for future rental payments and assets (the right to use the leased asset) that should be recognised in an entity's statement of financial position. This approach aimed at ensuring that leases were accounted for consistently across sectors and industries.
19 March 2009