IASB sets out impact of lease accounting reforms
The International Accounting Standards Board (IASB) has published a document outlining the likely practical effects of its new Leases Standard.
The publication also includes details on the similarities and differences between the IASB's requirements and those of the US Financial Accounting Standards Board (FASB).
The final standard – which is intended to bring leases onto company balance sheets – is due to be issued later this year. The IASB document compares the new and current accounting requirements.
It shows the differences between the IASB standard and the regime being introduced by the US standard setter FASB.
The IASB and FASB have been working jointly on lease accounting reform, but there are some differences between the two boards' models.
The IASB's analysis concludes that the costs to companies of applying the new standard will be broadly similar for both the IASB's and the FASB's model. The document also looks at other implications of the leases accounting model, such as the possible impact on the cost of borrowing.