The recent joint proposals from FASB and IASB to eventually overhaul lease accounting rules would most impact retailers, according to an in-depth report from Credit Suisse Securities.

The Swiss investment bank estimates off-balance-sheet lease liability for the S&P 500 companies is at least $549 billion. It figures two industry groups--Food & Staples Retailing and Specialty Retail--account for 25 percent of the total.

I see that FASB is sticking to its schedule for ending most off-balance-sheet treatment for leases, and so is the IASB. It's about time, frankly, if only to spare us poor, I mean, intrepid financial journalists from having to sort through the particulars of the current accounting treatment a moment longer than necessary.

I speak from personal experience here, having wrestled with the false distinction between capital and operating leases for a sidebar to a piece I wrote for CFO Magazine way back when. The article delved into the details of a particularly complex variation that companies were using to finance real estate, called synthetic leases.

While it hasn't received much attention, a bill introduced by Senator Kent Conrad (D-ND) in June could help many companies come tax time. The bill, S.3510, would permanently extend the 15-year recovery period for qualified leasehold improvement property, as well as qualified restaurant and retail properties. The bill has seven co-sponsors, including five Republicans. It mirrors a bill introduced in the House (H.R. 4306) in late December, by Rep. Kendrick Meek, a Democrat from Florida. MeekÕs bill attracted 45 co-sponsors, also from both sides of the aisle.

Prior to 2004, most buildings and building improvements followed a 39-year depreciation schedule, says George Manousos, a partner in the Washington office of Pricewaterhouse Coopers. That changed with the passage of the American Jobs Creation Act of 2004, which permitted a 15-year depreciation schedule. Businesspeople had argued that because of wear and tear and changing trends, these improvements didn't last anywhere near 39 years. In addition, the accelerated schedule boosted companies's depreciation expense, which is non-cash, reducing their taxable income.

Uh oh. Here we go again.

Merely hearing the word "sub-prime" is enough to make you squirm. But, put it in the same sentence as "automaker" and suddenly you want to puke, or sell all of your equity investments.