2011 targeted outreach on the definition of a lease and types of leases
In March 2011, the Board and the staff conducted targeted outreach regarding the Board’s tentative decisions on the definition of a lease. The purpose of the targeted outreach was to obtain a better understanding of the implications of any proposed changes to the ED. The boards and the staff also wanted to test whether the proposed changes to the guidance in the ED would provide a better basis on which to determine whether a contract is, or contains, a lease.
During March 2011, the staff met with a geographically diverse group of constituents, including preparers, accounting firms, working group members and others. A range of industries were represented, including retail, financial services, real estate, transportation, power and utilities, oil and gas, telecommunications, technology, outsourcing, shipping, airlines, health care and hospitality.
The staff also performed targeted outreach during March and April 2011on types of leases involving over 20 separate meetings and interacting with over 70 entities including users, preparers, accounting firms, standard-setters and the joint working group. The primary objective of the outreach was to discuss whether there is more than one type of lease for accounting purposes and whether or not all leases should have a similar profit or loss recognition pattern.
Click here to read a summary of feedback received during outreach activities in March/April 2011.