The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) today launched a public discussion on lease accounting by publishing their preliminary views in a joint discussion paper.
The discussion paper Leases: Preliminary Views is 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).
In the discussion paper the IASB and the FASB discuss a possible new approach to lease accounting.
The boards propose that lease accounting should be based on the principle that all leases give 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.
The discussion paper is open for comment until 17 July 2009.