The exposure draft of the new global accounting standard has been published, representing a milestone in this long running saga. When it finally comes into force, it will have the effect of converging the standards of the IASB and FASB. It will be binding on publicly quoted companies throughout the EU. The deadline for comments on this draft is December 15th, and if all goes according to schedule, it will come into operation in 2013. One of the most important effects as far as companies are concerned is that they will now have to capitalise the assets and liabilities of all leases running for more than 12 months from inception, on their balance sheets.

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