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I have come to realize that when most people ponder converging FAS 13 with the international lease accounting standard (IAS 17) they think that FAS 13 must change dramatically in order to be in sync with IAS 17. This is not the case, however, as the two standards are very much alike. Both FAS 13 and IAS 17, for instance, have classification tests regarding automatic transfer of title and bargain purchases options. Similarly, both standards have tests regarding the relationship of the lease term to economic life, and measuring the present value of the minimum lease payments. One true difference, though, is that synthetic leases are not allowed under IAS 17. Other than this, however, the two standards move pretty much in lock step.
