The long-running plan to reform the lease standard is now in the final phase following a series of outreach meetings with key stakeholders in mid to late 2013. With all the comments and feedback from a second exposure draft in 2013 now digested, the boards now plan to prioritise the leases project.

The January 2014 board meeting included an in-depth discussion of the possible ways forward for lessor accounting; and options for lessee accounting, taking into account any possible ways of providing cost relief for small ticket leases.

‘This is an important joint meeting, it is not the final decision on the lease proposals but it will be an important decision,’ an IASB spokesperson told Accountancy. ‘All of the decision making will be done this year and after that we will release a very detailed wording of the standard.’

The leases project is a joint effort between the FASB and the IASB. In the initial exposure drafts, there were are only minor differences between the US and global standard-setters’ proposals, primarily related to existing differences between US GAAP and International Financial Reporting Standards (IFRS), and decisions the FASB made related to non-public entities.

A final draft of the standard for lessee and lessor accounting is likely to be issued before the end of 2014.