FASB/IASB Exposure Draft Webinar Presentation and Audio Available on TRALA's Website
On May 30, TRALA held an informational webinar regarding the revised FASB and IASB Exposure Draft containing new proposed standards for lease accounting that was released on May 16, 2013. Bill Bosco, Principal, Leasing 101, and Tom James, President and CEO, TRALA, informed the membership of TRALA what the new standards mean for truck lessors and their customers. Click here for the presentation with audio. A copy of the revised Exposure Draft can be found here.
TRALA, its members and other leasing and lessee organizations aggressively commented on the lease accounting proposals in the first exposure draft released in August 2010. Due to the aggressive stance taken, the FASB and IASB were forced to reconsider some of their initial proposals and eventually scrap the first Exposure Draft and begin working on a new draft, which was released in May 2013.. Several revisions from the 2010 Exposure Draft were made in response to TRALA's comments, including the decision to continue to treat short-term rentals (1 year or less) under the current standards; easier accounting for contingent rents without estimations of variables; and simpler incorporation of renewals into definition of lease terms.
There are still provisions that TRALA intends to fight, including the front-loading of costs in the amortized accounting model for vehicle leases. Comments on the new Exposure Draft are due on September 13, 2013. TRALA will be working with its FASB Working Group to draft industry-wide comments, and will also be providing its members with detailed information on how to submit company-specific comments in the coming weeks.