• 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.
Leases for banks cover
Download Now
PDF files require Adobe Reader to view

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. 



Share this

Share this

Financial services regulation

Regulation can involve change and complexity, however many organisations use regulatory to underpin business transformation and drive change.

Financial Reporting & Accounting Standards

KPMG has extensive experience in applying accounting standards, both Australian accounting standards and IFRS, to a range of transactions.


KPMG’s Banking practice in Australia is well placed to help clients successfully navigate challenging times and capitalise on opportunities.