Saturday 20 March 2010

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Leases

IASB May 2009

 

The discussion paper Leases: Preliminary Views, published in March 2009, deals mainly with accounting by lessees. It proposes that lessees should use a right-of-use accounting model. At this meeting, the Board discussed how to apply such a model in the financial statements of lessors. The Board decided tentatively to develop an approach whereby the lessor retains the leased item in its statement of financial position and recognises:

  • an asset for its right to receive rental payments from the lessee; and
  • a liability for its performance obligations under the lease.

The Board will continue its discussion of the lessor model in future meetings.