South Africa


  • Industry: Financial Services
  • Type: Publication series
  • Date: 2014/05/09

Paths diverge on lease accounting 

Full convergence on lease accounting seems unlikely after the IASB and FASB disagreed on key aspects of the proposals in their March meeting.

Although both Boards remain committed to on-balance sheet recognition of leases by lessees, they could not agree on exactly how lessee accounting should work. The IASB favoured a single model for all leases but the FASB preferred a dual model that would allow straight-line recognition of total lease expense in many cases.
In other areas, the Boards agreed to eliminate or simplify many aspects of their earlier proposals. Proposed changes to lessor accounting have been scaled back, and enhanced exemptions for lessees would reduce implementation costs.


IFRS Newsletter: Leases | Previous Issues

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IFRS Newsletter: Leases - issue 14, March 2014

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This edition of IFRS Newsletter: Leases provides an overview of the IASB and FASB discussions of the leases project in March 2014.