Since March 2014, the Financial Accounting Standards Board and International Accounting Standards Board have continued discussions on the joint project on accounting for leases.
Several tentative decisions were reached that modify or clarify the May 2013 exposure draft. The Exposure Draft proposed two models (Type A and Type B) for the classification of a lease. Both models require capitalization of a right-of-use asset and recognition of a lease liability.
Learn more about the models in our latest MHM Messenger: Leasing Project Update.