Monthly Archive: May 2011

May 31 2011

Issues to Consider as One Prepares for the Financial Impact of Lease Accounting Changes (May 2011)

The effective date for implementation of the changes to accounting for leases may be a few years away but it is not too early to prepare for these changes, especially as one considers the impact on key financial analysis metrics and ratios. It is important to consider how these changes, which may be significant, should …

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May 22 2011

Reversal on Lease Classification and Expense Recognition

In our review of the FASB and IASB tentative conclusions reached in April, we noted that the Boards had agreed to introduce two classifications for lessee accounting depending upon whether the lease was considered to be a finance lease or other-than- finance lease. Both lease types would have been required to be recognized on the …

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May 17 2011

Lease Accounting Update – May 16, 2011

  In their April meetings, the FASB and the IASB tentatively agreed upon a number of changes to their original proposed Exposure Draft for lease accounting. In this update, we highlight those issues that we believe are particularly important. Lease Classification and Pattern of Expense Recognition In a major change, the Boards have agreed to …

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May 11 2011

Action Plan for Lease Accounting Changes

As we have been discussing for a number of weeks, there are major changes that are being proposed in the accounting for leases for both lessees and lessors, with the major emphasis initially being directed to the lessee community. The result of these changes will be the elimination of the operating lease form of accounting, …

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