According to an article posted on the Journal of Accountancy, IASB Chairman Hans Hoogervorst on Thursday acknowledged the converged lease accounting proposal is bound to be unpopular with many companies.

The report states that in a telephone conference with reporters, Hoogervorst and FASB Chairman Leslie Seidman discussed key aspects and challenges associated with the lease accounting proposal.

According to the report, Hoogervorst acknowledged that the standard is "not a very popular one", noting that this standard would likely be one of the "least popular" among preparers due to the fact that companies like off-balance-sheet financing, and the standard is going to put an end to a major part of it.

Additionally, the report outlines Leslie Seidman's comments who stated that four of the board members voted in favor of the proposal, while three of  board members offered alternative views on various aspects of the proposal.

To read the full Journal of Accountancy report with quotes from Hoogervost and Seidman, click here.

Previously on Equipment Finance Advisor: IASB and FASB Propose Changes to Lease Accounting