Here comes the Long-awaited IFRS 16 on Lease Accounting, to replace IAS 17 : leases, effective 1st Jan 2019
The International Accounting Standards Board issued the long-awaited lease accounting standard that it has been developing for over a decade with the Financial Accounting Standards Board, which is also expected to release its version of the standard early this year. Hans Hoogervorst Both the IASB and FASB versions of the leasing standard will bring leases onto company balance sheets for the first time, but will differ in some key aspects. The IASB's version for International Financial Reporting Standards, known as IFRS 16 Leases, replaces accounting requirements introduced more than 30 years ago that are no longer considered fit for purpose and is a major revision of the way in which companies account for leases. Leasing provides an important and flexible source of financing for many companies, the IASB noted. However, the old lease accounting Standard (IAS 17 Leases) makes it difficult for investors and others to get an accurate picture of a company’s lease assets and liabiliti...