The final IFRS standard is expected to set out how assets and liabilities arising from a lease will be recognised on the balance sheet, and will affect most businesses, with products ranging from cars, trucks and aircraft, to property leases, all falling under the leasing umbrella. 

The most important change will be to bring leases which were formerly accounted for as operating leases onto the balance sheet of lessors. This is designed to improve comparability of accounts but will have a significant impact on key performance indicators (KPIs) requiring a major communication exercise with investors and analysts. 

Another key issue to consider will be the definition of a lease with companies forced to review all existing lease contracts and in some instances, to renegotiate leases to separate assets from service provision.

Prior to the release, the IASB will hold two live web presentations on the new leases standard on 13 January, to coincide with the launch of the new standard.

Both presentations will provide an overview of the new requirements, followed by a Q&A session. Each presentation will last approximately 45 minutes.

To register for the webcasts, go to:

9am Wednesday 13 January 2016 Click here

3pm Wednesday 13 January 2016 Click here

Detailed information about the leases project is available here

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