Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Lease Project Possible Stalemate
The latest FASB/IASB Lease Accounting Project meetings on Feb. 28 and 29 had as objectives to change the lessee cost pattern to better reflect the economics (straight-line) and to see if that decision would mean changes to lessor accounting methods that had already been decided. The reason for the continued work on the lessee cost pattern is that most comment letters supported a straight-line cost pattern for what we call operating leases under current GAAP. The reason they would re-look at lessor accounting is the concern of many Board members that they consider the possible need for symmetry.
The Boards could not agree on a lessee accounting method, so they never got to the lessor/lessee symmetry issues. The lessee issue under consideration was the front-loaded cost pattern of the right of use (“ROU”) method for lessees whereby the ROU asset is amortized straight-line and interest is imputed versus the ROU liability amortizing using “effective interest method” amortization. The comment letters of virtually all preparers (lessees) and many users (lenders, debt analysts and equity analysts) received by the Boards said that there are two types of leases ' leases that transfer ownership (aka capital leases per current GAAP) and leases that merely transfer a temporary right of use (aka operating leases per current GAAP). The comments said further that the P&L cost pattern should be different with only former capital leases having a front-loaded cost pattern, while the former operating leases should have a level cost pattern. In other words, should there be two types of leases and lessee accounting methods with the ROU or former operating leases having a straight-line cost pattern? The FASB agrees, while the IASB does not. The IASB thinks that all leases should be accounted for the same, citing one of the Project's initial objectives ' to eliminate different accounting for similar leases that is an issue under FAS 13 with its bright-line PV test.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.