Last week the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) “tentatively” agreed on a “dual-model” approach for treating leasing expenses, from both the perspective of the lessor and the lessee.

“The Boards previously agreed that leases should be recorded on the balance sheet, but have continued to discuss the classification and pattern of expenses in the income statement,” according to a joint release. In last week’s decision, the boards decided that some leases would be accounted for using an approach similar to that proposed in the 2010 exposure draft, while others would be accounted for using an approach that results in a straight-line lease expense.

For a more complete discussion of the boards’ decisions at their June 13 meeting, here is a summary.