(Previous Posts: Part 1, Part 2, Part 3, Part 4, Part 5)

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.

Attachments

Approach Y – Working Paper 6 (PDF)

Working Paper 6 Analysis (Excel)

I welcome your feedback on the new working paper. I also invite you to watch for my concluding working paper.