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IFRS issues new document

31 July 2015
The IFRS has issued a document entitled “Leases: Practical implications of the new Leases Standard.” This document describes the IASB’s lessee accounting model and compares it to the FASB’s model, highlighting the similarities and differences between them. In response to requests from stakeholders, it also provides an overview of some of the possible effects of the forthcoming changes to lessee accounting and of the work that the IASB has undertaken to assess those effects.

The IASB and the FASB are working together to improve the accounting for leases. In order to meet this objective, the Boards think that a customer (lessee) leasing assets should recognise assets and liabilities arising from those leases (including leases that are off balance sheet today).

The Boards jointly published a revised Exposure Draft for Leases in May 2013 ED. The Boards received extensive feedback on their proposals, and have heard a broad range of views. Since March 2014 the Boards have deliberated almost all aspects of the project. They will decide upon the effective date of the new Leases Standard in the next few months. The IASB plans to issue the new Leases Standard before the end of 2015.