The FASB & IASB had a joint meeting on Feb. 2 by videoconference. The topic of discussion was a definition of a lease. They came up with the following definition:
A lease is a contract in which the right to use a specified asset is conveyed, for a period of time, in exchange for consideration.
This definition includes contracts which are outside the scope of the new (and current) lease accounting standard. Notably, the definition is not limited to property, plant, and equipment, but the standard is.
There will be further work on the new standard at the upcoming joint videoconference meetings Feb. 16-18.
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