New lease accounting standard is formally published

IFRS 16 Leases comes into force from January 2019 A new lease accounting standard has been formally published covering the future accounting treatment of leased assets. But trade associations say it is unlikely to erode the benefits of leasing. For the last three or four years, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have been working on a common standard of accounting for all leased assets, including company vehicles. The new standard, IFRS 16 Leases, becomes mandatory from 1st January, 2019, but as with any other change to accounting standards, companies will need to ensure that they produce a set of comparative accounts for [...]

New lease accounting rules – how might they affect leasing and salary sacrifice?

New lease accounting rules – how might they affect leasing and salary sacrifice? New accounting rules have been proposed which cover the treatment of leased assets, seem unlikely at this stage to erode the benefits of leasing company vehicles or acquiring them through salary sacrifice car schemes. For the last three years, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have been working on a common standard of accounting for all leased assets, including company vehicles. Several exposure drafts have been published both before and after periods of consultation with interested parties, providing a framework for the new proposals. Update Feb 2016: New lease accounting [...]

By |February 14th, 2014|Categories: Accounting, Asset Finance, Vehicle Finance|Comments Off on New lease accounting rules – how might they affect leasing and salary sacrifice?

What impact will new accounting proposals have on your vehicle lease?

What impact will new accounting proposals have on your vehicle lease? The introduction of new lease accounting proposals by the International Accounting Standards Board has raised many questions for businesses who lease vehicles. The proposals put forward by the IASB aim to bring all leased assets onto the balance sheet, offering a higher level of transparency where a business’ finances are concerned. Any company with a car lease agreement is advised to become familiar with proposed changes and their repercussions. The ‘right of use’ model, if introduced, will mean that any assets leased by a company, including property, computers or vehicles, will need to be accounted for in order to [...]

By |June 13th, 2013|Categories: Accounting, Cars, Vehicle Finance|Comments Off on What impact will new accounting proposals have on your vehicle lease?

International Accounting Standards | Lease accounting

Lease accounting: New International Accounting Standards Two and a half years after the last publication of its proposals on the subject, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have finally issued a revised draft accounting standard with regards to lease accounting, for public comment. It will inevitably take a little time to digest and assess the detail of the new proposals but, at first glance, whilst it is apparent that some of the initial feedback has been taken on board and the proposals have been simplified, there still remains some unnecessary complexity which will inevitably be expensive and onerous to implement for businesses who [...]