Leases

The International Accounting Standards Board has published its exposure draft ED/2010/9, Leases, which proposes a new accounting model under which both lessees and lessors will record assets and liabilities arising from lease contracts. The most significant change from current practice is the proposed requirement that a lessee should recognise all leases, and not just finance leases, on its balance sheet. This new model will ensure that the balance sheet gives a complete picture of leasing activities and financing, net debt and gearing.