An AICPA proposed interpretation of the Code of Conduct would eliminate the current independence rules that rely on US GAAP’s classification (capital versus operating) for determining permissibility. It would be replaced with a “conceptual framework” that establishes a minimum set of conditions, such as the lease having to be immaterial to certain covered members. PwC recommends that the AICPA adopt a more principles-based standard rather than a bright-line prohibition on material leases.
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