23. August 2010 11:05
The Australian Accounting Standards Board has issued exposure draft ED 202 Leases, including proposals by the IASB.
The aim of the exposure draft is to improve the transparency of lease accounting and make it easier for investors to compare financial statements. It represents a significant shift from current accounting practices under the existing standard AASB 117 Leases.
Current accounting methods often do not recognise the assets and liabilities arising under a lease contract, which can give a false impression of the assets, liabilities and gearing for a particular company. The ED aims to eliminate this inconsistency by recognising all material assets and liabilities of the lease on the balance sheet.
Comments are due to the AASB by 12 November 2010, or to the IASB by 15 December 2010.