Document icon

Leases - 2010 Exposure Draft

Description

The IASB and the FASB (the Boards) are jointly developing a standard that would be applied in accounting for lease transactions. The aim of the project is to ensure that assets and liabilities arising under leases are recognised in the statement of the financial position.

The first step in this process was the publication of a discussion paper Leases, which was issued in March 2009. 

In August 2010 the IASB and the FASB published jointly an Exposure Draft on Leases. The proposed requirements would supersede IAS 17 in IFRS as well as replace IFRIC 4.

The Boards proposed a right-of-use approach under which the lessee recognises a right-of-use asset and a liability to make rental payments. Subsequently the right of use asset is measured at cost less depreciation and impairment and the liability at amortised cost. The ED proposed an hybrid model for lessors, based on exposure to risks and rewards of the underlying asset.

EFRAG published its Comment Letter on 15 December 2010. EFRAG expressed support for a right of use model, provided that the proposals identify a robust and operational distinction between leases and arrangements that are services.

In May 2013 the Boards published a revised exposure draft. More information is available on the EFRAG webpage dedicated to the second Exposure Draft.

Show more...

Documents