Project Update

szLeases—Joint Project of the IASB and FASB

Last Updated: Sept 30, 2009 (Updated sections are indicated with an asterisk *)

szLeases

Project Objectives
Project Plan
*Decisions Reached at the Last Meeting
*Summary of Decisions Reached to Date
*Next Steps
*Board/Other Public Meeting Dates
Background Information
Contact Information

Project Objectives

The primary objective of the leases project is to develop a new model for the recognition of assets and liabilities arising under lease contracts to ensure that financial statements provide useful, transparent, and complete information about leasing transactions to investors and other users of financial statements.

Project Plan

The International Accounting Standards Board (IASB) and the FASB are carrying out this project with the help of a joint international working group that will consult on lease accounting issues. Working group members will provide expert advice on staff and Board proposals and implementation issues while offering practical considerations from a variety of perspectives (lessor, lessee, users of financial statements, and auditors). The working group will provide input through a mixture of formal meetings, conference calls, and email.

*Decisions Reached at the Last Meeting (January 22, 2009)

The FASB and IASB held a joint videoconference meeting to discuss the content and timing of the proposed Discussion Paper on lease accounting. The Boards decided to include in the Discussion Paper a high-level discussion of lessor accounting issues. The Boards plan to issue the Discussion Paper in March 2009.

*Summary of Decisions Reached to Date (As of January 22, 2009)

Scope (see the April 2007, July 2008, and January 2009 minutes and meeting summaries)

*Next Steps

The staff will continue drafting the Discussion Paper to include a high-level discussion of lessor accounting. The Boards plan to issue the Discussion Paper in March of 2009.

*Board/Other Public Meeting Dates

The IASB meeting summaries and FASB meeting minutes are provided for the information and convenience of constituents who want to follow the Boards’ deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final Statement, Interpretation, FSP, or Statement 133 Implementation Issue.

Topic

IASB Meeting Summaries and Observer Notes

FASB Board Minutes

*Joint IASB/FASB Board Meeting (via videoconference) —How to Proceed with a Joint Leases Discussion Paper

January 2009

January 22, 2009

IASB/FASB Board Meetings—Initial Recognition and Measurement of the Lessee’s Obligation to Pay Rentals, Subsequent Measurement, Lease Presentation, and Subleases

November 2008

November 19, 2008

Other Public Meetings

Meeting of:

Materials

Financial Accounting Standards Advisory Council (FASAC)

March 20, 2007

Joint International Working Group

The first joint working group meeting was held on February 15, 2007, in London. A copy of the full meeting agenda, agenda papers, and the audio webcast of the meeting can be found on the IASB website for the first meeting of the Joint Working Group on Lease Accounting. View the summary report of the February 2007 joint working group meeting.

 

Background Information

Memorandum of Understanding (MoU)

In February 2006, the IASB and the FASB issued an MoU that described a joint work plan to expedite global convergence in accounting standards and that established a series of milestones to be reached by 2008. The leases project is part of the 2006 MoU. Under the 2006 MoU, the IASB and the FASB would have to consider and make a decision about the scope and timing of a potential leasing project by 2008. This goal was achieved when the IASB and the FASB added the leasing project to their respective agendas on July 19, 2006.

Contact Information

FASB Contacts:

NO One as of yet

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