Ias 17

International Accounting
measurement 17 (IAS 17): Leases
By PAUL YOUNG, CGA

This name is part of a series on International pecuniary Reporting Standards
published on PD Net.
Introduction

Introduction

Accounting for lessee

downplay information

Accounting for lessor

Leasing is a popular financing option for companies. However, the substance leasing
transactions give way been structured in the past has ca utilise study variations in the presentation
of financial statements. There have been two leasing options useable to companies:

Short-term leases
Sales and leaseback
Subleases
Contingent rentals
Amortization of right to use
Remeasurement/revaluation
Leases with options
truck lease example
Property lease example

Financing lease â€" used to pay equipment for the major part of its useful life,

when there is a reasonable assurance that the lessee volition obtain ownership of the
equipment by the end of the lease term

Operating lease â€" used to finance equipment for less than its useful life, and at

the end of the lease term the lessee force out return the equipment to the lessor without
further obligation

The proposed new International Accounting Standard 17 (IAS 17), Leases will make
no distinction between operational and financing leases.



Instead, all leases will be
covered under the construct of right-to-use summation, which basically means the ability
to use a specified asset over the term of the lease. Different financial statement
reporting of leases will be required. The following are exceptions to the proposed
new treatment:
mineral rights leases
Leases less than 12 months
Leases for biological and/or intangible assets
leverage and sale contracts

Objective of IAS 17 leases proposal
It is important for users of financial statements to have a clear picture of the lease
obligations of both the lessee and the lessor. The objective of the proposed new
exemplification is to facilitate a better understanding of debt...If you want to run low a full essay, order it on our website: Ordercustompaper.com



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