Financial Accounting Standards Board Leases Gain Approval For 2016

by | Nov 16, 2015 | Guest Spotlights, Tax and Accounting Desk

On November 11, the FASB completed almost a decade of meetings and discussions with a vote to publish an accounting standard that will require businesses to record on their balance sheets the effects of its leases. The board approved the plan, to be published in early 2016, with a 6-1 vote. FASB member Marc Siegel voted against it. “This is a really hard decision for me. On the pro side of what the standard is doing, I think obviously an amount [will be recorded] on the balance sheet,” Siegel said. “On the con side, while we will have an amount on the balance sheet, I think it’s going to be mismeasured.” The rest of his FASB colleagues, however, said the forthcoming standard would benefit analysts and investors, even if it was not as broad of a change as the standard-setter once envisioned.

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