After a break in August, the IASB and FASB (the Boards) returned to the leases project in September. In July, the Boards had decided that the receivable and residual model should be the 'single' lessor accounting model. Much of the debate focused on how lessors would apply this model in practice. This was a working session about practical application, though underlying conceptual tensions were visible beneath the surface.
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- Lessor lease receivables and residual assets to be measured at cost; fair value measurement prohibited
- Lessor lease receivables in scope of financial instruments guidance for impairment
- Residual value guarantees not recognised by lessors until payments are received
- Lessor residual assets to be assessed for impairment in accordance with IAS 36