Siterra Reacts to Proposed FASB Changes
On August 17, 2010, the FASB and the IASB issued a joint exposure document that proposes a new model for lease accounting. Essentially, the proposal eliminates the concept of "operating" leases. The proposal, once final, would converge US GAAP and IFRS accounting for leases, and would significantly change both. All outstanding leases as of the date of initial application would be subject to the new lease accounting model. Transition requirements would require adjustment of prior periods. This proposal would essentially impact all companies with leased assets, but would impact industries such as retail (with many store leases) and financing companies that lease assets as lessors the most. No proposed effective date is given - the boards intend to solicit feedback taking into consideration the many other major joint projects expected to be finalized in the near term.
Siterra is working with Resources Global Professionals to ensure that our software remains in compliance with GAAP.