The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) initiated a joint project in 2010 and issued an Exposure Draft which would essentially create a single accounting model for most leases and would require the recognition of lease related assets and liabilities on the balance sheet. Currently most leases (particularly those leases that involve real property) qualify as operating leases and leases payments arising from these leases are generally accounted for in the period that the payments are made. The proposal would require recognition of assets and liabilities arising from these leases. The FASB and the IASB have expressed their commitment that the vast majority of leases be recognized on the balance sheet. The Lease Accounting blog is dedicated to monitor, report and invoke discussions around the proposed rule.
iLease Management LLC offers the technology solution, iLeasePro, and management approach to ensure compliance of these new Lease Accounting rule changes.