The October 2014, Issue 16 of KPMG ISG’s IFRS Newsletter: Leases – Defining the Problem summarizes the meetings of the FASB and the IASB from July through October at which the Boards discussed certain issues related to the joint project about lease accounting. As has been the case in each joint meeting since March 2014, while the Boards reached converged decisions in the reconsideration of some of their proposals, there were key areas on which they do not agree.
Definition of a Lease. The Boards agreed to clarify the definition of a lease, but deferred voting on aspects of the definition on which they appeared to have different views.
Sale and Leaseback Transactions. The Boards reaffirmed the overall approach to sale and leaseback accounting, but had different views about a number of important application issues.
Lessor Disclosures. The Boards tentatively decided to include in the final standards disclosure requirements for lessors that were not proposed in the Exposure Drafts.
The Boards expect to conclude their redeliberations by the end of this year, and to issue their respective new standards in 2015.