Plans to remove operating and finance lease distinctions

Lease accounting is not the least controversial subject that the International Accounting Standards Board (IASB) and US Financial Accounting Standards Board (FASB) could have chosen on which to prepare a converged standard.

The process has proved painful but the second exposure draft on leases, ED/2013/6, is now out for comment, and you have to assume that the final standard will not be a lot different from this.

The material has been exposed in different forms three times and been debated by the standard-setters three times.