Leases: Back to the fundamentals

The long awaited lease accounting standard, that began with a project proposal in 2006 is finally on its way to becoming a reality. After issuing two exposure drafts followed by a fairly long period of re-deliberations, the International Accounting Standards Board (IASB) announced on 30 October 2015...

Full description

Saved in:
Bibliographic Details
Main Author: TAN, Pearl Hock-Neo
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2015
Subjects:
Online Access:https://ink.library.smu.edu.sg/soa_research/1454
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Singapore Management University
Language: English
id sg-smu-ink.soa_research-2453
record_format dspace
spelling sg-smu-ink.soa_research-24532015-12-17T03:36:18Z Leases: Back to the fundamentals TAN, Pearl Hock-Neo, The long awaited lease accounting standard, that began with a project proposal in 2006 is finally on its way to becoming a reality. After issuing two exposure drafts followed by a fairly long period of re-deliberations, the International Accounting Standards Board (IASB) announced on 30 October 2015 that a final standard will be issued by the end of the year with an expected effective date of 1 January 2019 and early adoption permitted for entities which have also adopted IFRS 15 Revenue from Contracts with Customers. In short, leases for lessees will be on-balance sheet with exemptions made for short term leases and small asset leases. However, there is no change for lessor accounting with the dual model approach being retained. That said, there are still a number of issues that may be of interest to lessors. The definition of a lease and how one determines the lease term and lease payments are likely to change from the existing model. Although it seems like a very basic element in the whole structure, the definition of a lease has significant implications for lease accounting in totality. This article explains the definition and its implications for lessees and lessors as outlined by the IASB. 2015-11-18T08:00:00Z text https://ink.library.smu.edu.sg/soa_research/1454 Research Collection School Of Accountancy eng Institutional Knowledge at Singapore Management University Lease Accounting IFRS Accounting Corporate Finance
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Lease Accounting
IFRS
Accounting
Corporate Finance
spellingShingle Lease Accounting
IFRS
Accounting
Corporate Finance
TAN, Pearl Hock-Neo,
Leases: Back to the fundamentals
description The long awaited lease accounting standard, that began with a project proposal in 2006 is finally on its way to becoming a reality. After issuing two exposure drafts followed by a fairly long period of re-deliberations, the International Accounting Standards Board (IASB) announced on 30 October 2015 that a final standard will be issued by the end of the year with an expected effective date of 1 January 2019 and early adoption permitted for entities which have also adopted IFRS 15 Revenue from Contracts with Customers. In short, leases for lessees will be on-balance sheet with exemptions made for short term leases and small asset leases. However, there is no change for lessor accounting with the dual model approach being retained. That said, there are still a number of issues that may be of interest to lessors. The definition of a lease and how one determines the lease term and lease payments are likely to change from the existing model. Although it seems like a very basic element in the whole structure, the definition of a lease has significant implications for lease accounting in totality. This article explains the definition and its implications for lessees and lessors as outlined by the IASB.
format text
author TAN, Pearl Hock-Neo,
author_facet TAN, Pearl Hock-Neo,
author_sort TAN, Pearl Hock-Neo,
title Leases: Back to the fundamentals
title_short Leases: Back to the fundamentals
title_full Leases: Back to the fundamentals
title_fullStr Leases: Back to the fundamentals
title_full_unstemmed Leases: Back to the fundamentals
title_sort leases: back to the fundamentals
publisher Institutional Knowledge at Singapore Management University
publishDate 2015
url https://ink.library.smu.edu.sg/soa_research/1454
_version_ 1770572646837125120