Dataline (Supplement): A New Approach to Lease Accounting - Real estate lessee supplement (No. 2010-38)

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The FASB and IASB's recently-issued exposure draft titled Leases contains the boards' proposal for a new approach to lease accounting that could fundamentally change the way both lessees and lessors account for leases. Under the proposed model, a lessee's rights and obligations under all leases—existing and new—would be recognized on its balance sheet. Lessors would report leases using either a performance-obligation approach or a derecognition approach. Dataline 2010-38 provides an overview and various insights into the boards' proposed standard. In January 2011, PwC issued the attached real estate lessee supplement to this Dataline summarizing the exposure draft from a lessee's perspective.