RSM Australia

IFRS16

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.