Another step towards convergence of the accounting standards. On August 27, 2010, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) jointly published an Exposure Draft, outlining proposed major changes to Generally Accepted Accounting Principles (GAAP) for leases. The changes would modify GAAP accounting standards to require the capitalization of most leases now treated as operating leases.
The changes are intended to provide greater disclosure in GAAP financial statements, since operating leases are not generally reflected on the balance sheets of either landlords or tenants, and to harmonize GAAP treatment of leases with international accounting standards.