ANALYSIS OF CONCEPTUAL AND TECHNICAL (IN)CONSISTENCIES IN THE IFRS 16 LEASES ACCOUNTING MODEL

Bunea Stefan ()
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Bunea Stefan: The Bucharest University of Economic Studies, Romania The Faculty of Accounting and Management Information Systems

Annals of Faculty of Economics, 2017, vol. 1, issue 1, 247-258

Abstract: The purpose of this research is to identify a set of viable arguments for a critical analysis of the new standard in terms of the needs of users of financial statements, but also to clarify a number of conceptual and technical issues that we will have to take into account in the future, while implementing it. IFRS 16 solves the conceptual dilemmas for the lessee, but not for the lessor. It is obviously an unfinished project which requires further conceptual clarification along with consistent and less expensive technical solutions. We have seen that preparers are rather willing to accept conceptually unsubstantiated solutions if they bring cost savings. They are blaming IASB for taking no account of the different business models which, in their opinion, account for the fact that not all lease contracts are financing for the lessee (a dual model would be more appropriate). Unlike them, auditors, academics, and EFRAG consider it absolutely necessary that IASB solutions should be in accordance with the international conceptual framework and that both the lessee and the lessor should apply a single accounting model based on the right-of-use asset theory.

Keywords: lease; right-of-use asset theory; off-balance sheet financing; lease capitalisation; discount rate (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2017
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