CHP Consulting has published the second in a series of thought leadership pieces on the IASB and FASB’s overhaul of lease accounting.
Lease Accounting Reform: The Systems Impact for Asset Finance Lessors summarises the key features of the proposals so far, and considers the current implications for lessors from a systems perspective. The paper also provides an overview of the current accounting standards, and highlights the key changes made to the original proposals set out in 2010’s Exposure Draft.
Ralph Neuff, relationship director and a member of CHP’s Operational Board, said: “The original proposals were widely held to be too burdensome and subjective, but the industry has broadly welcomed the revisions since then. This is our take on the situation as it stands, and we will continue to issue expert commentary as changes occur.”
The IASB and FASB are expected to issue a revised proposal for a new lease accounting standard in the second half of 2012. In February 2011, CHP Consulting issued the whitepaper How lessors are meeting new challenges using futureproof technology, which addressed three principal systems issues raised by changes proposed in the Exposure Draft.
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