Background information:Leasing transactions represent a very significant portion of the capital investments of many companies. The accounting classification of these leases can have a dramatic impact on the financial position and earnings reported by a company. The AICPA Accounting Trends and Technique – 2008 disclosed that 591 of the 600 companies surveyed (98.5%) had leases. During the early 2000s, a resurgence of interest in off-balance sheet financing took place in the economic environment which placed a premium on asset return and return-on-equity ratios. This same interest continues today as companies contemplating financing often view the benefits of off-balance sheet accounting as a major factor in deciding whether to consummate a proposed lease.The complexities of accounting for leases are evident, based on the significant volume of authoritative accounting literature issued for US GAAP and IFRS. This is more evident for US GAAP than for IFRS given the extensive issuance of amendments, interpretations, technical bulletins and EITFs subsequent to the issuance of SFAS No. 13. However, in conjunction with the convergence project for leases, the IASB and the FASB announced their intentions to issue a single common standard in 2011 requiring that all leases be accounted for as finance leases. The issuance of such a common standard is certain to have a significant effect on corporate America, especially those companies that seek off-balance sheet financing through leasing.RequiredDiscuss whether you support the joint proposal, providing the specific rationale for your conclusion.