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Leases

Background

Leasing is a global business, and differences in accounting standards can lead to considerable non-comparability. This joint IASB-FASB project seeks to improve the accounting for leases by developing an approach that is more consistent with the conceptual framework definitions of assets and liabilities. The project would result in a replacement of IAS 17 Leases.

An earlier G4+1 Study had recommended capitalising property rights inherent in all leases.

 

Current status of the project

ED/2013/6 Leases was published on 16 May 2013, with a comment deadline of 13 September 2013. Redeliberations are expected to commence in the first quarter of 2014.

 

Project milestones

DateDevelopmentComments
July 2006 Added to the IASB's agenda
19 March 2009 Discussion Paper DP/2009/1 Leases: Preliminary Views published Comment deadline 17 July 2009
17 August 2010 Exposure Draft ED/2010/9 Leases published Comment deadline 15 December 2010
21 July 2011 IASB/FASB announce intention to re-expose proposals ED originally expected in first half of 2012
16 May 2013 Exposure Draft ED/2013/6 Leases published Comment deadline 13 September 2013

Related Discussions

  • Leases II

  • Mar 19, 2014

  • The Boards continued their joint deliberation of the leases project with a discussion of the lease term. Specifically, the Boards considered whether or not to mandate reassessment of the lease term. Further, the Boards redeliberated the short-term lease exemption.

  • Leases I

  • Mar 18, 2014

  • In continuation of the deliberations in January 2014, the two Boards met in Norwalk for a joint discussion on various issues around lease accounting. At the first of the two sessions, the Boards discussed the general approaches for lessee and lessor accounting as well as targeted simplifications for lessees.

  • Leases

  • Feb 24, 2014

  • The Advisory Council discussed the options facing the IASB and the FASB as they prepare to finalise their proposals on leasing.

  • IASB Chairman’s report

  • Jan 27, 2014

  • Mr Hoogervorst provided an update, noting his remarks would concentrate on three areas: financial instruments, leases and insurance.

  • Leases (IASB/FASB)

  • Jan 23, 2014

  • This joint session with the FASB provided an in-depth discussion of (1) the possible ways forward for lessor accounting; and (2) the possible ways forward for lessee accounting, taking into account any possible ways of providing relief for small ticket leases.

  • Leases (IASB/FASB)

  • Nov 20, 2013

  • The Boards discussed feedback received on the leases exposure draft and plans for redeliberation.

  • IASB Chairman and Senior Technical Directors’ reports

  • Oct 17, 2013

  • The IFRS Foundation Trustees received a report from Mr Hoogervorst (IASB Chair) and senior technical directors. An update on the operation of the Accounting Standards Advisory Forum (ASAF) was received, and various IASB projects were discussed.

  • Update from the IASB

  • Apr 11, 2013

  • A report was given by Chairman Hans Hoogervorst on the Accounting Standards Advisory Forum, the Effects Analysis working group, and updates on current projects.

  • Leases (IASB education session)

  • Feb 19, 2013

  • The IASB held an education session to discuss possible clarifications to the guidance within the revised Leases Exposure Draft regarding the transition of leases that are currently classified as finance leases under IAS 17 'Leases'.

  • Leases (IASB only)

  • Feb 18, 2013

  • The Board discussed whether, as a consequence of the lessee accounting proposals, right-of-use assets that meet the definition of investment property should be within the scope of IAS 40 Investment Property.

  • Leases (IASB and FASB)

  • Jan 30, 2013

  • The Boards were asked to consider some questions that have been raised during the drafting process about the identification of lease components and the unit of account when applying the lease classification guidance.

  • Leases

  • Sep 20, 2012

  • The Boards discussed sale and leaseback transactions, issues relating to the single lease expense approach, and issues relating to the classification of leases.

  • Leases

  • Jul 17, 2012

  • The Boards discussed topics relating to the exposure draft on leases. Topics discussed include due process considerations, lessee accounting, lessor receivable and residual approach, interim disclosures, and comment period.

  • Leases

  • Jun 13, 2012

  • As part of its continuing deliberations surrounding the Exposure Draft 'Leases' (Leases ED), the IASB and FASB discussed whether there should be different lease expense recognition patterns for different lease contracts in the context of lessee accounting and whether any changes should be made to the lessor accounting proposals as a consequence of the lessee accounting discussions.

  • Leases

  • May 24, 2012

  • The IASB and the FASB discussed the feedback received from the outreach on the subsequent measurement of right-of-use (ROU) assets and the next steps.

  • Financial instruments – Impairment

  • May 21, 2012

  • The IASB and FASB discussed whether an entity should apply the proposed “three-bucket” expected-loss impairment approach to lease receivables, including those recognised under (1) the proposed receivable and residual leases model and (2) existing lease standards

  • IFRIC 12 — Payments made by an operator in a service concession arrangement

  • May 15, 2012

  • The Committee analysed the issue of variable concession fees in a service concession arrangement, deciding the principles being developed in the leases and revenue recognition projects should be applied. Draft amendments to IFRIC 12 are to be prepared with a view to aligning issue of the amendments with the revised exposure draft on leasing.

  • IAS 16 and IAS 38 — Contingent pricing of property, plant and equipment and intangible assets

  • May 15, 2012

  • The IFRS Interpretations Committee received an update on the IASB's deliberations in the leases and revenue recognition projects on accounting for variable payments (as a possible base to develop a basis of accounting for contingent payments for the purchase of a single asset) directed the staff to continue monitoring developments in the IASB’s projects with a view to provide a more developed proposal regarding contingent payments for the purchase of a single asset to a future Committee meeting.

  • Leases

  • Feb 29, 2012

  • The IASB and FASB received a summary from the Working Group Meeting held on January 24, 2012 and also discussed: (1) three alternative approaches to subsequently measuring the right-of-use ('ROU') asset by the lessee, and whether there are any consequences for lessor accounting resulting from the outcome of the lessee accounting discussions (2) whether the Boards agree with their previous tentative decision to exclude leases of investment property from the scope of the receivable and residual approach and whether there are any consequences for lessee accounting arising from this tentative decision.

  • Leases – Education session

  • Feb 27, 2012

  • The IASB held an education session to allow IASB members the opportunity to ask questions or provide feedback to the staff in advance of discussing the topics again during the joint IASB and FASB meeting.

  • Report of the IASB Chairman

  • Jan 12, 2012

  • Hans Hoogervorst noted that he had provided a detailed written report with supporting appendices. He limited his remarks to highlighting some issues.

  • Leases

  • Dec 14, 2011

  • The IASB and FASB discussed (1) cancellable leases (2) lessor accounting for rental income arising from investment property (3) disclosure requirements for lessors.

  • Leases – Education session

  • Dec 13, 2011

  • The IASB held an education session on (1) cancellable leases (2) lessor accounting for rental income arising from investment property that is outside the scope of the lessor receivable and residual approach (3) disclosure requirements for lessors that have leases of investment property that are excluded from the scope of the receivable and residual approach.

  • Leases

  • Nov 16, 2011

  • As part of its continuing deliberations surrounding the Exposure Draft Leases, the IASB and FASB discussed: (1) consequential amendments to IFRS 3 'Business Combinations' / Topic 805 'Business Combinations' in the FASB Accounting Standards Codification, (2) transition requirements related to IFRS 3 and Topic 805, (3) consequential amendments to IAS 23 'Borrowing Costs' / Topic 835 'Interest' and (4) transition accounting for secured borrowings.

  • Leases

  • Nov 15, 2011

  • The IASB discussed the transitional requirements for a first-time adopter of IFRSs regarding leases; considering whether some of the transitional requirements and relief provided for existing IFRS preparers should also be provided to a first-time adopter of IFRSs.