FASB, IASB To Reexpose Leasing Proposal
July 27, 2011
FEI Summary

On July 21, 2011, the Financial Accounting Standars Board and International Accounting Standards Board announced they have decided to formally reexpose their proposal for a common leasing standard.

The decision to release a revised Exposure Draft, reflecting the significant changes made to the leasing proposal in response to earlier comments, is likely to be hailed by preparers. See, e.g. earlier posts in the FEI blog: Preparers concerned about change in direction of FASB, IASB leasing proposal, and FEI, Applauding FASB-IASB Move For More Time on Convergence Projects, Calls For Reexposure of Remaining MOU Projects; SEC Announces IFRS Roundtable .

According to the FASB - IASB joint press release, the decision to reexpose the leasing standard is because:

Even through the boards have not completed all of their deliberations, the decisions taken to date were sufficiently different from those published in the exposure draft to warrant reexposure of the revised proposals.

As to timing, the revised ED is expected to be finalized during the 3rd quarter, 2011, "with a view to publishing a revised exposure draft shortly afterwards," according to the two boards.

Separately, as previously reported, FASB and the IASB intend to release a revised ED on their proposed standard on revenue recognition, with an expected release date this quarter, for a 120-day comment period. (The length of the comment period on the upcoming leasing ED has not yet been determined.)

Read more in these summaries by: KPMG and PwC.

Prepared July 27, 2011 by Edith Orenstein, director of Accounting Policy Analysis and Communications. This summary does not reflect FEI opinion unless specifically noted above.