LEASE ACCOUNTING UNDER IFRS 16 AND IAS 17 - A COMPARATIVE APPROACH

Cristina Aurora Bunea-Bonta? ()
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Cristina Aurora Bunea-Bonta?: “Constantin Brâncoveanu” University of Pitesti, Romania
Authors registered in the RePEc Author Service: Cristina Aurora Bunea-Bontas

Contemporary Economy Journal, 2017, vol. 2, issue 2, 78-84

Abstract: n January 2016 the International Accounting Standard Board (IASB) issued the International Financial Reporting Standard (IFRS) 16 Leases, this being the final step in accomplishing the goal of bringing most leases on-balance sheet for lessees. Whereas, under the provisions of International Accounting Standard (IAS) 17 Leases, a lessee had to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet), the new accounting model requires the lessee to recognise almost all lease contracts on the balance sheet (with optional exemptions for certain short-term leases and leases of low-value assets). The aim of this paper is to discuss some of the major differences between IFRS 16 and IAS 17 and to point out the effects of the new accounting model on a company’s financial statements.

Keywords: lease accounting; IFRS 16 Leases; IAS 17 Leases (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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