Introducing “Approach Y”: A Better Lease-Accounting Model for Lessees (Part 6)
Here is the sixth 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 provides additional evidence that the “Interest and Amortization” (I&A) model (formerly known as “Approach A” or the “Accelerated” approach) does not represent the economics of leasing arrangements as faithfully as Approach Y does. In particular, this paper demonstrates that Approach Y exhibits a necessary characteristic of faithful representation that the I&A model lacks.
Please find the new paper attached.
I welcome your feedback on the new working paper. I also invite you to watch for my concluding working paper.