Lease Accounting Answered

FASB and the IASB have agreed to give corporations a choice of two methods to account for leases, the "right-of-use" method or the "whole contract method". The right-of-use method amortizes the value of a lease and basically treats all leases as capital leases. The whole contract method allows the lessee to expense the lease payments equally throughout the life of the lease. http://www3.cfo.com/article/2012/6/gaap-ifrs_lease-accounting-fasb-iasb-whole-contract-approach