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IFRS News

A new approach to lease accounting - Accounting for the Lease

21 March 2017
Determining the Lease Liability The accounting for the lease is largely similar to how finance leases are currently treated under AASB 117, with the lease liability being measured at the present value of the lease payments, discounted at the interest rate implicit in the lease.  The following payments are included in the lease:

A new approach to lease accounting - Determining what is part of the lease contract

21 March 2017
Contracts may contain both lease components and non-lease components.  AASB 16 gives two options in these circumstances: Account for the lease component(s) separately from non-lease components; or A practical expedient allows the entire contract to be accounted for as a lease.

A new approach to Lease Accounting - Determination of whether contracts contain a lease

21 March 2017
It may sometimes be straightforward to identify a lease, but some arrangements may be more problematic. A lease is defined as a contract where: There is a specifically identified asset The contract conveys the right to control the use of that asset for a period of time

A new approach to Lease Accounting

21 March 2017
On 13 January 2016, the IASB published the long-awaited IFRS 16 Leases, which has been adopted as AASB 16 in Australia.  The project to issue a new leases standard began in 2006, primarily in response to user concerns about off-balance-sheet assets and liabilities arising from operating leases, and resulted in multiple exposure drafts and discussion papers.

Applying AASB 15 in practice

20 September 2016
In May 2014, the AASB issued AASB 15: Revenue from Contracts with Customers. The new standard is applicable for periods beginning on or after 1 January 2018, and replaces AASB 111 Construction Contracts and AASB 118 Revenue and related interpretations.

Financial reporting update for 30 June 2016

9 June 2016
It is that time of year again, finance teams are getting ready for year-end reporting season so we have compiled this financial insight to provide you with a round-up of the latest updates in the financial reporting and auditing worlds.