A significant overhaul in lease accounting standards has been widely anticipated for some time now. In fact it is over 10 years since the core proposals in this exposure draft (ED or Leases ED) were first made. As expected, the proposed standard, if adopted in its current form, will make significant changes to the current approach to accounting for leases. In summary, it removes the differences between operating and finance leases and brings all lease obligations onto the lessee’s statement of financial position as a financial liability.