Australia

Details

  • Service: Audit, Financial Statement Audit, Financial Reporting & Accounting Standards, Accounting Advisory Services, International Financial Reporting Standards (IFRS), Topics, Financial Services Regulation
  • Industry: Financial Services, Banking
  • Type: Regulatory update
  • Date: 29/07/2013

New on the Horizon

These publications consider the requirements of IASB Exposure Drafts and discuss key elements of the proposed requirements and observations.

New on the Horizon: Leases for banks 

Banks said that the 2010 lease accounting proposals were 'complex, costly and would reduce comparability'. The IASB’s and the FASB’s joint leases project continues to be a hot topic for banks. The Boards published revised proposals in May 2013.
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This edition of New on the Horizon looks at the potential impact of the revised lease accounting proposals and highlights the issues relevant to banks.

 

Key insights

  • Lease accounting proposals may have a significant impact on banks’ compliance with capital and other regulatory requirements.
  • Proposed dual model and new lease classification test may impede comparability.
  • Proposals may affect the covenant arrangements of customers with significant lease commitments.
  • Exclusion of some sale and leaseback transactions from lease proposals could increase volatility in profit or loss. 

 

 

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