The U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Boar

The U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) will have another go at putting to bed a converged standard for lease accounting. The meeting, scheduled for April 24, 2014 follows a series of talks earlier this year that made some progress towards a resolution on this long-standing accountings project, GlobeSt.com reported.

According to FASB’s announcement of the meeting’s agenda on its website, the boards will discuss lease modifications and contract combinations, variable lease payments, in-substance fixed payments, and the discount rate.

Left unresolved from the last talks in the March meeting is the question of whether there should be a single approach to recognize leases, or a duel-recognition approach, depending on the type of lease. With a dual approach, the leases would qualify as either Type A or Type B. The latter are most likely to be used by real estate companies, as it would allow for a straight-line expensing method with the asset returned to the owner at the end of the term.

Waiting for a standard is wearing on the industry’s nerves; a survey from Deloitte at the beginning of 2014 found that among real estate lessees, confidence in their IT and compliance preparations for the new standard has fallen, with only 1% “extremely” or “very” prepared to comply in 2013, down from 9% in 2011.

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