Date: January 29, 2016
Issue: Lease Accounting
To: Ms. Candace Wright, Chair, Private Company Council, Financial Accounting Foundation & Mr. Russ Golden, Chairman, Financial Accounting Standards Board
Filing Type: Coalition
Description: The undersigned organizations are concerned that the decision to apply the soon-to-be finalized lease accounting standard to private businesses will exacerbate complexity, not meet the needs of private company investors and harm capital formation for those businesses. Such a decision would presume that users of private company financial statements would prefer capitalizing leases on balance sheets. However, since users of private companies are different than public company financial statement users, in both composition and motivation, this may not be the case.