Details

Type: Business and industry issue
Date: 5/27/2011

The future of lease accounting - Issue 6

Two become one?

Should lessees and lessors follow a single accounting model? This question dominated lively discussions at the Boards’ May meetings.

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IFRS-Leases-Newsletter-May-2011.pdf

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Highlights

Proposals for other-than-finance lease accounting abandoned
Lessees to apply single right-of-use model, with front-loaded lease expense profile
Exception for short-term leases to be reconsidered
Boards split on lessor accounting model – staff asked to develop alternatives that may bridge the gap between the Boards

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