Our most recent column ("To the SEC: Forget the timetable and stop the runaway train," March 15-April 18) reported that the Financial Accounting Standards Board and the International Accounting Standards Board are racing to complete a long list of major projects. We warned that this dash will produce less than the best standards, and promised to describe some specifics, leases in particular.
The lease project has generated some tentative conclusions about lessor revenue recognition issues that concern us. We urge the boards to not make them final because they're compromised, anachronistic, misleading and otherwise certain to produce unfaithful representations that won't serve managers, users, capital markets or society. We also believe that a standard based on these decisions would cause lessors to make dysfunctional decisions.
See full Article.
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