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The Proposed New Approach to Accounting for Leases: A Call for a Legal and Economic Analysis of U.S. Equipment Leases

On July 19, 2006, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) (together, the Boards) formally added accounting for leases to their respective agendas as a joint convergence project.1 This addition represented the culmination of prior efforts to change the lease accounting paradigm extending back to 1996, when Warren McGregor authored Accounting for Leases: A New Approach-Recognition by Lessees of Assets and Liabilities Arising under Lease Contracts. The Boards currently expect to issue an important milestone document in the first half of 2009, referred to as a "preliminary views" document (PV) by the FASB and a "discussion paper" (DP) ...

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