About

Lease accounting can be complex and can have a significant impact on an organisation’s financial statements.

The International Accounting Standards Board and the US Financial Accounting Standards
Board published the Exposure Draft Leases in August 2010.  The Exposure Draft proposed a number of fundamental changes to lease accounting that, if incorporated into a final standard, would have significant and far reaching financial reporting implications for organisations that enter into leases (both as lessees and lessors).  Following the receipt of comments on the Exposure Draft, the Boards are continuing to discuss the final form that a revised leasing standard will take.  A final revised leasing standard is expected to be released in late 2011.

Key Learning Objectives:
This session will address the likely impact of adoption of the proposals contained in the Exposure Draft, and will focus on:
• Determining whether a arrangement contains a lease
• Key differences between the current financial reporting for leases and the proposals in the Exposure Draft
• Implications of the proposed changes to lease accounting for lessees
• Implications of the proposed changes to lease accounting for lessors
• Short term leases
• Sale and leaseback arrangements
• Changes that the Boards may make to the Exposure Draft when issuing a final standard

Who Should Attend?
• Leasing Professionals
• Accountants and Finance Professionals
• Auditors
• Managers of external reporting
• Asset managers
• Property managers
• Fleet managers
• Procurement managers

Training Methodology
The session will have a practical focus and will demonstrate the impact of the proposed changes to lease accounting through the use of worked examples.

Outline

Current accounting for leases:
• Applicable standards
• Identifying a lease
• Classification of leases
• Accounting by lessees
• Accounting by lessors
• Sale and leaseback arrangements
• Disclosure
 
The Exposure Draft:
• Objective
• Scope
• Accounting by lessees (recognition, measurement and presentation)
• Accounting by lessors (two approaches; recognition, measurement and presentation for the performance obligation approach; recognition, measurement and presentation for the derecognition approach)
• Short-term leases
• Sale and leaseback arrangements
• Disclosure
• Transition
 
Developments since the release of the Exposure Draft
 


Facilitator

In-house Training