Introducing “Approach Y”: A Better Lease-Accounting Model for Lessees (Part 4)

(Previous Posts: Part 1, Part 2, Part 3) Here is the fourth in a series of working papers that I am preparing to explain “Approach Y”—a lease-accounting model for entities that are lessees. The new working paper summarizes the structural aspects of financial-statement presentation and disclosure under Approach Y and three other approaches. The summary supports the [...] Read more > >

Insurance Accounting: More evidence on the viability of true convergence

In a report this past April to the Financial Stability Board, the FASB makes this statement about accounting convergence: The FASB believes that the ultimate goal of convergence is a single set of high-quality, international accounting standards that companies worldwide would use for both domestic and cross-border financial reporting. The statement is explicit that the [...] Read more > >

The IASB and FASB Decide on Lease Accounting

The IASB and FASB are meeting in London this week where leases is on the agenda.  At the meeting, the Boards proposed a standards update that will require all leases with a term in excess of one year to be capitalized on the balance sheet.  No surprise there; that has been the Boards’ position since it released [...] Read more > >

Introducing “Approach Y”: A Better Lease-Accounting Model for Lessees (Part 3)

(Previous Posts: Part 1, Part 2) Here is the third in a series of working papers that I am preparing to explain “Approach Y”—a lease-accounting model for entities that are lessees. The new working paper evaluates the conceptual bases of Approach Y and three other approaches with regard to subsequently measuring right-of-use (RoU) assets. The results of this evaluation [...] Read more > >

Introducing “Approach Y”: A Better Lease-Accounting Model for Lessees (Part 2)

(Previous Posts: Part 1) Here is the second in a series of working papers that I am preparing to explain “Approach Y”—a lease-accounting model for entities that are lessees. The new working paper, which compares the measurement outcomes of Approach Y and other approaches, is attached. Also attached is the Excel file to which the new working paper [...] Read more > >

Introducing “Approach Y”: A Better Lease-Accounting Model for Lessees (Part 1)

To date, the Financial Accounting Standards Board (FASB), the International Accounting Standards Board (IASB), and the Boards’ constituents have not reached a consensus on how lessees should account for leases. Several approaches to lessee accounting have been identified and debated, but so far none of them has been widely embraced as the clear solution to [...] Read more > >