Global Standards for the world economy

Thursday 27 April 2017

Banner graphic

IASB meeting summaries and observer notes

 IASB / FASB February 2013


The IASB met on 18 February 2013 to discuss how to account for right-of-use assets that meet the definition of investment property in accordance with IAS 40 Investment Property as a consequence of the changes being proposed to lease accounting.

The IASB tentatively decided to require an entity to account for right-of-use assets in accordance with IAS 40 if the leased property meets the definition of an investment property.

 All IASB members agreed.

(IASB-only education session)

 The IASB held an education session on 19 February 2013 to discuss the transition proposals for leases that are currently classified as finance leases under IAS 17 Leases.

 No decisions were made.

(IASB decision making session, jointly with FASB)

 In this meeting, the IASB and the FASB discussed the transition proposals relating to leases that are classified as finance, capital, sales-type or direct financing leases in accordance with the existing requirements.

Transition: Capital/Finance Leases

 The FASB and the IASB tentatively decided to provide specific transition relief for existing finance, capital, sales-type, and direct financing leases. Lessees and lessors would not be required to make any adjustments to the carrying amount of any assets and liabilities associated with those leases at transition. Specific guidance on the subsequent measurement of those assets and liabilities will be provided in the revised Leases Exposure Draft. The boards’ intention in including that guidance is to provide accounting that is consistent with how most of those leases would have been accounted for under IAS 17 Leases and Topic 840 Leases in the FASB Accounting Standards Codification®. The revised Leases Exposure Draft will supersede IAS 17 and Topic 840.

All IASB members and six FASB members agreed.

Transition: Leveraged Leases (FASB-only)

The FASB tentatively decided that a lessor should apply the proposed leases guidance to existing leveraged leases retrospectively.

Six FASB members agreed.

Next steps

The Exposure Draft is planned for publication in the first half of 2013


Date: 2/18/2013