SFO Alert (July 18, 2012)

July 18, 2012

FASB and IASB Leases Webcast and FASB Disclosure Framework Project

FASB and IASB Schedule Webcast on the Current Status of the Leases Project

On July 19 at 11 a.m. EDT, the Financial Accounting Standards Board (FASB or the Board) and the International Accounting Standards Board (IASB) (collectively, the Boards) staffs will hold a live webcast to discuss the current status of the joint Leases Project. As previously reported in an SFO Alert on June 14, the Boards reaffirmed their decision that lessees should recognize lease obligations on their balance sheets. Additionally, the Boards agreed upon a revised expense and income recognition pattern on the income statement for both lessees and lessors depending on the nature of the underlying asset. Based on the Boards’ tentative decisions, NAREIT believes that, for most property leases, lessors would recognize lease revenue on a straight-line basis.

Participants on the live webcast will be provided with the opportunity to submit questions to the staffs. Participants can register for the session via the IASB's website. An option to listen via phone is also available.

FASB Solicits Constituent Input on the Disclosure Framework Project

On July 12, FASB invited constituents to provide comments on the Disclosure Framework Discussion Paper (the Discussion Paper or the Proposal). The purpose of the Board's project is to evaluate how disclosures in the financial statements could be improved to meet the needs of financial statement users. While this project would not establish new or eliminate existing disclosure requirements, the Board intends on applying the Disclosure Framework to existing financial standards upon completion of the Disclosure Framework Project. In so doing, existing disclosure requirements that are irrelevant could be modified or eliminated in their entirety. If you are interested in participating in a NAREIT Task Force that will evaluate the Discussion Paper and consider whether NAREIT should comment on the Proposal, contact Chris Drula at cdrula@nareit.com by August 15. The deadline for submitting comments to the Board is November 16, 2012.

The Discussion Paper focuses on the following areas:

  • A decision process that could assist the Board in developing disclosure requirements that address relevant information only;

  • Flexible disclosure requirements that could be modified by preparers to focus on relevant information in specific circumstances;

  • A judgment framework that could aid preparers in determining which disclosures are relevant in specific circumstances;

  • Organization and formatting methods that could make disclosures easier to find and understand; and,

  • Disclosure requirements for interim period financial statements.

 

Contact

If you have any questions, please contact George Yungmann at gyungmann@nareit.com or Chris Drula at cdrula@nareit.com.