LEASING – THE COMMENTS ARE IN
The comment letters on the IASB and FASB's joint
exposure draft (ED) on leases raise many concerns about the
boards' proposals. Fernando Chiqueto fromPwC's Accounting
Consulting Services examines what respondents said and outlines the
next steps.
The comment period for the proposed leasing standard has come to
an end. But it looks like the debate has just begun.
Over 600 letters were received by the IASB and FASB in response
to the ED. The responses, discussed in more detail below, reveal
mixed support. Many reactions have been less than positive and some
go as far as implying financial meltdown if the proposals were to
go ahead. More recently the Investor Advisory Committee
(IAC)1 expressed that lease proposal is not an
improvement to current lease accounting and supported a
comprehensive disclosure package that would allow investors to
better understand the risks and uncertainties related to lease
contracts.
