Earlier this year the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) issued a joint exposure draft that, if implemented, will completely revamp the way leases are accounted for by both lessees and lessors.
Generally speaking, the proposed changes would move the cost of operating leases from a disclosure in the footnotes onto the balance sheet. Ramifications of the proposed changes could prove harmful to the commercial real estate industry. Because of this, BOMA International feels it’s important that you have the opportunity to review as much information as possible and that you provide your comments on the draft. The ultimate intent of the change is to bring additional “sunshine” to lease accounting to items not currently on the balance sheet. BOMA International along with others believe FASB/IASB need to take more time to ensure the final standard is sound and thoroughly vetted.
Following is the official joint exposure draft issued by FASB and the IASB.
Joint Exposure Draft
Resources